<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



Oct 3 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks slid to a near seven-month low on Tuesday as worries about higher-for-longer U.S. interest rates gained steam, though Hungary&#8217;s forint got a lift from a report that the European Union would free up some funding for the country.



MSCI&#8217;s index tracking emerging market equities&nbsp;.MSCIEF&nbsp;tumbled 1.0% to its lowest level since mid-March, while currencies&nbsp;.MIEM00000CUS&nbsp;fell 0.2% against the dollar by 8:57 GMT.



Risk sentiment across markets took a dip with U.S Treasury yields hitting 16-year highs on robust economic data and as several U.S. Federal Reserve officials cautioned monetary policy will need to stay tight for a while.



In Asia, Hong Kong&#8217;s main stock index .HIS tumbled 2.7% as investors returned to markets following a public holiday, with shares of Evergrande3333.HK jumping 28.1% in volatile trade, after being suspended last Thursday amid news of a probe into the embattled developer&#8217;s chairman.



Turkey&#8217;s lira TRYTOM=D3 traded at 27.5 to the dollar after data showed annual consumer price inflation in September climbed to 61.53%, just below expectations and rising for a third consecutive month in response to recent tax hikes and lira weakness.



The modest rise in inflation &#8220;provides the first signs that the inflation spike is close to levelling off,&#8221; said William Jackson, Chief Emerging Markets Economist at Capital Economics in a note.



&#8220;But the central bank’s work isn’t over and we still expect a further 1,000bp of interest rate hikes by early next year.&#8221;



In central and eastern Europe, the Hungarian forintEURHUF= was up 0.2% against the euro after a report said the European Commission intends to unfreeze funding of about 13 billion euros ($13.61 billion) to the country before the end of November.



The funding had been suspended due to long-running disputes with Brussels.



Poland&#8217;s zloty&nbsp;EURPLN=&nbsp;was up 0.1% ahead of a local monetary policy decision on Wednesday, where most economists expect a 25 basis points interest rate cut.



Focus was also on Ukraine after its central bank said it would bring in a more flexible exchange rate from Tuesday, relaxing the official peg it has had throughout the war with Russia in a move to boost the economy. The Ukranian hryvnia UAH= was up 0.9% against the dollar.



Elsewhere, Indonesia&#8217;s central bank has intervened in the foreign exchange market to manage the supply and demand of U.S. dollars, an official told Reuters on Tuesday. The rupiah IDR= slipped 0.3%.



(Reporting by Amruta Khandekar, editing by Deborah Kyvrikosaios)

World map with charts and graphs as symbols of global finance

Stocks tumble to near 7-month low, Forint gains on EU funds report

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigerias-labour-unions-suspend-indefinite-strike-820x615.jpg" alt="" class="wp-image-427875" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigerias-labour-unions-suspend-indefinite-strike-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigerias-labour-unions-suspend-indefinite-strike-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigerias-labour-unions-suspend-indefinite-strike-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigerias-labour-unions-suspend-indefinite-strike-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigerias-labour-unions-suspend-indefinite-strike-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigerias-labour-unions-suspend-indefinite-strike-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Members of the Nigerian Labour Union, holding flags and placards, gather to protest against fuel price hike and rising costs, in Abuja, Nigeria August 2, 2023. REUTERS/Abraham Achirga</figcaption></figure>



ABUJA, Oct 2 (Reuters) &#8211; Nigeria&#8217;s biggest labour federations on Monday said they were suspending an indefinite strike that was set to begin on Tuesday after last minute talks with President Bola Tinubu&#8217;s government, which had warned that the action could damage the economy.



Tinubu is under pressure to ease economic hardships after he scrapped a decades-old petrol subsidy and allowed the naira currency to depreciate, leading to soaring prices in Africa&#8217;s biggest economy and major oil producer.



The government agreed a temporary wage increase for government workers, a three-month income subsidy for 15 million poor households and a pause in a value-added tax on diesel, among several concessions to prevent the strike.



In return, unions will suspend the strike for 30 days while negotiations continue, including on a new minimum wage for all Nigerian workers.



&#8220;After 30 days if these issues are not implemented &#8230; it will show bad faith on the side of government,&#8221; Joe Ajaero, the leader of Nigeria Labour Congress, the country&#8217;s largest federation, told reporters. (Reporting by Felix Onuah, writing by MacDonald Dzirutwe, Editing by Rosalba O&#8217;Brien)

Members of the Nigerian Labour Union protest against fuel price hike and rising costs, in Abuja

Nigeria’s labour unions suspend indefinite strike

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="574" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/3FJWW72S7VLMHIATYDNMZI7MY4-820x574.jpg" alt="" class="wp-image-427865" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/3FJWW72S7VLMHIATYDNMZI7MY4-820x574.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/3FJWW72S7VLMHIATYDNMZI7MY4-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/3FJWW72S7VLMHIATYDNMZI7MY4-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/3FJWW72S7VLMHIATYDNMZI7MY4-768x538.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/3FJWW72S7VLMHIATYDNMZI7MY4-1536x1076.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/3FJWW72S7VLMHIATYDNMZI7MY4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s Minister of Petroleum Diezani Alison-Madueke addresses delegates at the opening of the Nigeira Oil &amp; Gas 2014 conference in Abuja, March 18, 2014, REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



LONDON, Oct 2 (Reuters)&nbsp;&#8211;&nbsp;A former Nigerian oil minister appeared in court in London on Monday charged with receiving bribes in the form of cash, luxury goods, flights on private jets and the use of high-end properties in Britain in return for awarding oil contracts.



Diezani Alison-Madueke was Nigeria&#8217;s minister for petroleum resources between 2010 and 2015, during the administration of former president Goodluck Jonathan.



Appearing at Westminster Magistrates Court, she spoke only to give her name, date of birth and address. She was not asked to formally enter a plea, although her lawyer Mark Bowen told the court she would be pleading not guilty.



She is the second high-profile Nigerian politician to face prosecution in Britain in recent years, following James Ibori, a former state governor who was convicted of fraud and money-laundering in 2012 and received a 13-year jail sentence.



Nigeria is Africa&#8217;s top oil producer but it suffers from systemic corruption in the political class which has hampered development and prevented its oil wealth from benefitting wider society.



Alison-Madueke was arrested in London in 2015, shortly after stepping down as minister, and was charged in August with six bribery offences. She has spent the past eight years on police bail, living in St John&#8217;s Wood, an expensive area of London.



The charges against her, read out in court, all related to events alleged to have taken place in London.



Prosecutor Andy Young said she was alleged to have accepted a wide range of advantages in cash and in kind from people who wanted to receive or continue to receive the award of oil contracts which he said were worth billions of dollars in total.



The advantages included a delivery of 100,000 pounds ($121,620) in cash, the payment of private school fees for her son, and the use and refurbishment of several luxurious properties in London and in the English countryside.



They also included the use of a Range Rover car, payment of bills for chauffeur-driven cars, furniture, and purchases from the upmarket London department store Harrods and from Vincenzo Caffarella, which sells Italian decorative arts and antiques.



District Judge Michael Snow granted Alison-Madueke bail but imposed terms including an 11 p.m. to 6 a.m. curfew, an electronic tag to be worn at all times and a 70,000-pound surety to be paid before she could leave the court building.



Her next court appearance will be at Southwark Crown Court, which deals with serious criminal cases, on Oct. 30.



Britain, Nigeria&#8217;s former colonial ruler, has long been a destination of choice for affluent members of the Nigerian political elite seeking to enjoy the benefits of their wealth.



London is a global money-laundering hub but it remains rare for public figures like Alison-Madueke to face prosecution for corruption-related offences.



($1 = 0.8222 pounds)



(Reporting by Estelle Shirbon; Editing by Jan Harvey and Angus MacSwan)

FILE PHOTO: Nigeria’s Minister of Petroleum Diezani Alison-Madueke addresses delegates at the opening of the Nigeira Oil & Gas 2014 conference in Abuja

Former Nigerian oil minister faces bribery charges in London court

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="622" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/AKAPJHETXVOTBH5Q5VWTKJHGXI-1-820x622.jpg" alt="" class="wp-image-427859" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/AKAPJHETXVOTBH5Q5VWTKJHGXI-1-820x622.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/AKAPJHETXVOTBH5Q5VWTKJHGXI-1-300x228.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/AKAPJHETXVOTBH5Q5VWTKJHGXI-1-119x90.jpg 119w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/AKAPJHETXVOTBH5Q5VWTKJHGXI-1-768x582.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/AKAPJHETXVOTBH5Q5VWTKJHGXI-1-1536x1165.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/AKAPJHETXVOTBH5Q5VWTKJHGXI-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s Finance Minister Njuguna Ndung&#8217;u carries a briefcase containing the Government Budget for the 2023/24 fiscal year outside the National Treasury building in Nairobi, Kenya June 15, 2023. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, Oct 2 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s government has picked Citi and South&nbsp;Africa&#8217;s Standard Group to advise it on how to handle a $2 billion Eurobond that is maturing in June 2024, a senior finance ministry official said on Monday.



The East&nbsp;African nation needs to repay or refinance the 10-year bond at a time when a surge in yields has effectively locked many frontier economies out of the market.



Its debt load and weakening shilling currency KES= has also fuelled concerns about the maturing bond. Kenya&#8217;s total public debt was 67.4% of gross domestic product at the end of last year, according to World Bank figures.



Finance Minister Njuguna Ndung&#8217;u has sought to downplay the situation, saying it is not a &#8220;big deal&#8221;.



Citi and Standard will help the Kenyan government deal with the maturity, Haron Sirima, the director of debt management at the Treasury told Reuters, without providing more details.



(Reporting by Duncan Miriri; Editing by Jon Boyle)

Kenya’s Finance Minister Njuguna Ndung’u carries a briefcase containing the Government Budget outside the National Treasury building in Nairobi

Kenya picks Citi and Standard Bank to advise on maturing $2 bln Eurobond

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/LM7NCFZJYRK3TMIISMQRT2EK2I-820x551.jpg" alt="" class="wp-image-427855" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/LM7NCFZJYRK3TMIISMQRT2EK2I-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/LM7NCFZJYRK3TMIISMQRT2EK2I-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/LM7NCFZJYRK3TMIISMQRT2EK2I-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/LM7NCFZJYRK3TMIISMQRT2EK2I-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/LM7NCFZJYRK3TMIISMQRT2EK2I.jpg 1446w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Cocoa plants are pictured at a plantation managed by the Schmidt Agricola farming group in Bahia state, Brazil, in this undated handout photo received on September 25, 2023. Moises Almeida Schmidt/Handout via REUTERS/File Photo</figcaption></figure>



NEW YORK, Oct 2 (Reuters)&nbsp;&#8211;&nbsp;Schmidt Agricola is a large agricultural company producing soybeans, corn and cotton in Bahia, Brazil, one of the country&#8217;s new-frontier agricultural areas fit for large-scale, high-tech farming. It recently added a new crop to its fields: cocoa.



Production of the chocolate-making ingredient is expanding outside of the main growing area in West&nbsp;Africa&nbsp;as farmers in places such Brazil, Ecuador and Colombia see potential profit in the crop.



The rally in prices to the highest level in nearly 50 years is boosting that trend, which could alleviate the current supply tightness in the global cocoa market. It also poses a threat to the livelihood of small farmers in Africa since recently planted orchards such as the ones in South America are more productive, reducing the overall cost of production.



As environmental concerns rise globally, the fact that cocoa is a native species from the Amazon region makes planting it in South America a type of reforestation, while in Africa native forests are being razed to open space for cocoa orchards.



Brazil &#8211; an agricultural powerhouse and the top global exporter of soy, corn, coffee and sugar &#8211; has seen cocoa plantations spreading over degraded pastureland in the Amazon region, as well as in large farms in the highly developed grain belt.



The country was once the second only to Ivory Coast in cocoa production, but a devastating fungus in the 1980&#8217;s known as Witches&#8217; Broom sharply reduced production. Nearly four decades later, crops are recovering.



Brazil&#8217;s government projects output could grow to 300,000 metric tons by 2025 and to 400,000 tons by 2030, from around 200,000 tons currently,&nbsp;which would turn the country from a net importer to a regular exporter of the commodity.



In Ecuador, annual production has risen to between 400,000 and 430,000 tons in 2022-2023 (Oct-Sept) from 287,000 tons five years ago, according to estimates by the International Cocoa Organization (ICCO) and Ecuador&#8217;s exporting group Anecacao.



Ecuador has become the third largest global grower, behind Ghana which produces around 750,000 tons. The top grower is Ivory Coast with 2.2 million tons.



Anecacao, which last July received record attendance of around 70 buyers from Asia, the United States and Europe for a trade and expo conference in Guayaquil, estimates production could continue to grow to as much as 800,000 tons by 2030.



<h2 class="wp-block-heading" id="h-large-scale-farming">LARGE-SCALE FARMING</h2>



Some of the new plantings in South America look huge when compared to the small holdings in&nbsp;Africa. Most producers in Ivory Coast and Ghana have around 5 hectares.



Schmidt Agricola has planted 429 hectares with cocoa, fully irrigated.



&#8220;I believe that the new profile of cocoa production will be large-scale,&#8221; said Moises Schmidt, one of the owners.



&#8220;You will need technology, you need to seek higher yields to be more profitable. Grains and fiber (cotton) will continue to be the main crops for us, but we see cocoa gaining more area in the next five years.&#8221;



High-tech, irrigated areas such as Schmidt&#8217;s have produced as much as 3,000 kg of dry cocoa beans per hectare (ha), while the new areas in Brazil&#8217;s Amazonian state of Para produce around 2,000 kg/ha.



That is much higher than the Ivory Coast&#8217;s average yield pf 500 to 600 kg/ha, which is similar to Ecuador. Ghana&#8217;s is smaller at around 400 kg/ha.



Jeroen Douglas, director of the Netherlands-based non-profit Solidaridad, which targets more sustainable supply chains, sees Brazil&#8217;s role in the market growing, in the same way it has with other agricultural commodities such as soy and corn.



&#8220;On Brazil, once the mindset is: &#8216;yes, we want to get into this commodity&#8217;, there&#8217;s no way of stopping them. That mindset is not there yet, but I think we are getting to a tipping point,&#8221; Douglas said.



<h2 class="wp-block-heading" id="h-back-to-farming">BACK TO FARMING</h2>



Brazil&#8217;s Amazonian state of Para is undergoing a revival in cocoa growing.



&#8220;There are people coming back to the farms, people that left in the past to try jobs in towns,&#8221; said producer Jose Garcia, who farms cocoa on 70 hectares (172 acres) that used to be pasture in the municipality of Medicilandia, Para state.



Those new orchards in the Amazon region would have an advantage in the European market since new EU legislation restricts commodity imports from areas that have been deforested for planting crops.



&#8220;If you plant cocoa trees there (Amazon region), it is considered reforestation,&#8221; said Douglas.



He said that a reforestation project with cocoa, along with other trees, is part of strategies underway to strengthen the Amazon canopy.



Organizations such as UN&#8217;s International Fund for Agricultural Development (IFAD),&nbsp;on the other side, seek to preserve the market share of small farmers, including&nbsp;African cocoa producers.



IFAD&#8217;s head Alvaro Lario said it was important for smallholders to improve productivity, distribution and marketing. The agency organizes training on agricultural techniques to increase production per hectare.



A broker at an international commodities trader, who asked not to be named due to the sensitivity of the topic, believes that chocolate companies are willing to source more cocoa away from&nbsp;Africa&nbsp;due to sustainability issues related not only to deforestation, but also to child labor.



&#8220;They (companies) are tired of trying to defend their business there, and certainly considering moving some of that business elsewhere&#8221;, the trader said.



(Reporting by Marcelo Teixeira in New York; additional reporting by Maytaal Angel in London. Editing by Simon Webb and Anna Driver)

Cocoa plants are pictured at a plantation managed by the Schmidt Agricola farming group in Bahia state

Farmers plant more cocoa outside Africa as prices rally

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



Oct 2 (Reuters)&nbsp;&#8211;&nbsp;Emerging market equities edged higher on Monday after a brutal third quarter marked by fears of U.S. interest rates staying elevated for longer, while investors assessed a slew of upbeat business activity reports from the region.



MSCI&#8217;s index of emerging market (EM) stocks&nbsp;.MSCIEF&nbsp;rose 0.1% by 8:29 GMT, on the first trading day of the final quarter of 2023.



The index suffered its biggest quarterly percentage loss in a year during the July-September period, weighed down by the Federal Reserve&#8217;s hawkish stance as well as renewed fears about China&#8217;s property sector debts.



The World Bank maintained its forecast for China&#8217;s 2023 economic growth at 5.1% but trimmed its prediction for 2024, citing persistent property sector weakness.



Markets in mainland China remained closed for the week-long National Day holiday.



The passage of a stopgap funding bill over the weekend which averted a U.S. government shutdown gave a lift to markets on Monday, and some analysts see further reasons for optimism in the near term.



&#8220;The authorities in China will continue to gradually add stimulus, which we expect to stabilize the economy later this quarter, while for the U.S. we do not expect any further rate hikes, although of course, &#8216;higher for longer&#8217; is a risk, especially for EM local debt,&#8221; said Jon Harrison, managing director of emerging market macro strategy at TS Lombard.



Among currencies, the Russian rouble RUBUTSTN=MCX came off a near-seven-week low of 98.71 versus the dollar after data showed the country&#8217;s manufacturing activity grew at its fastest pace in more than six years in September.



Most currencies in central and eastern Europe also held firm against the euro. The Hungarian forint EURHUF= outpaced peers, rising 0.6% against the euro, as data showed seasonally-adjusted Purchasing Managers&#8217; Index edged up to 47.4 in September



The Polish zloty EURPLN= gained 0.3% after a report signalled softening declines in the country&#8217;s manufacturing sector.



The Turkish lira TRYTOM=D3 was flat against the dollar. The country&#8217;s Purchasing Managers&#8217; Index for the manufacturing sector rose to 49.6 last month from 49.0 in August.



Broader EM currencies&nbsp;.MIEM00000CUS&nbsp;fell 0.1% against a firm dollar with the yen&nbsp;JPY=EBS&nbsp;at a near one-year low.



Elsewhere, Credit Suisse has reached an 11th-hour out-of-court settlement with Mozambique over the decade-old, $1.5- billion-plus &#8220;tuna bond&#8221; scandal, the Swiss bank&#8217;s new owner UBS UBSG.S said on Sunday.



(Reporting by Amruta Khandekar; editing by Mark Heinrich)

Stocks inch up on first day of Q4, investors assess PMI data

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/AC6OZXPWMVLGNFLNRU2REQQDNU-820x615.jpg" alt="" class="wp-image-427185" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/AC6OZXPWMVLGNFLNRU2REQQDNU-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/AC6OZXPWMVLGNFLNRU2REQQDNU-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/AC6OZXPWMVLGNFLNRU2REQQDNU-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/AC6OZXPWMVLGNFLNRU2REQQDNU-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/AC6OZXPWMVLGNFLNRU2REQQDNU-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/AC6OZXPWMVLGNFLNRU2REQQDNU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Members of the Nigerian Labour Union, holding flags and placards, march during a protest against fuel price hikes and rising costs, in Abuja, Nigeria August 2, 2023. REUTERS/Abraham Achirga/File Photo</figcaption></figure>



ABUJA, Oct 1 (Reuters) &#8211; Nigeria on Sunday announced a temporary wage increase for government workers, a three-month income subsidy for 15 million poor households and a pause in a value-added tax on diesel as the government sought to prevent an indefinite strike in two days.



After meeting with the government on Sunday, unions will on Monday take the proposals to their affiliates, who will decide whether to press on with the strike or suspend it, Joe Ajaero, president of the largest labour federation, Nigeria Labour Congress, told reporters.



Nigerian President Bola Tinubu said government workers would receive an additional 25,000 naira ($32) a month for the next six months, a smaller raise than the 200,000 naira that unions demanded. Tinubu said this was necessary to avoid pushing up double-digit inflation.



That would mean the lowest paid government worker in Nigeria will now earn 55,000 naira a month, up from 30,000 naira.



Poor households would also receive 25,000 naira a month for three months and a value-added tax on diesel will be paused for the same period, the president said.



The government also announced that mass transit buses would begin running on compressed natural gas.



At his inauguration in May, the president scrapped a decades-old fuel subsidy and ended foreign exchange restrictions, which has led to soaring cost of living, angering unions.



In a national broadcast earlier on Sunday marking 63 years of independence, Tinubu defended the reforms as necessary to put Africa&#8217;s biggest economy on the path to recovery.



&#8220;I am attuned to the hardships that have come. I wish today&#8217;s difficulties did not exist. But we must endure if we are to reach the good side of our future,&#8221; said Tinubu. (Reporting by Felix Onuah; Editing by MacDonald Dzirutwe, Daniel Wallis and Cynthia Osterman)

FILE PHOTO: Members of the Nigerian Labour Union protest against fuel price hikes and rising costs, in Abuja

Nigeria offers wage rise to state workers as strike looms

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="543" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline-820x543.jpeg" alt="" class="wp-image-427846" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline-820x543.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline-300x199.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline-136x90.jpeg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline-768x509.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline-1536x1017.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An urban view of high-rise buildings at dusk as seen from Hong Kong’s Victoria Peak on July 23, 2023 in Hong Kong, China. Future Publishing | Future Publishing | Getty Images</figcaption></figure>



The World Bank trimmed its growth forecast for developing East Asia and Pacific, citing a sluggish China and global demand amid still-high interest rates and dampened trade.



The World Bank said it now expects developing economies in East Asia and the Pacific to grow 5% in 2023, according to its October report published Monday in Asia. That’s slightly less than the 5.1% it had forecast in April. For 2024, the Washington-based multilateral bank now expects 4.5% growth for the region, down from its forecast of 4.8% in April.



The World Bank left its 2023 economic growth forecast for China unchanged at 5.1%, but lowered its 2024 estimate to 4.4% from 4.8% previously. The organization cited “longer-term structural factors,” elevated debt levels in the world’s second-largest economy and weakness in its property sector as reasons for its downgrade.



“While domestic factors are likely to be the dominant influence on growth in China, external factors will have a stronger influence on growth in much of the rest of the region,” the World Bank said.



Even though East Asian economies have mostly recovered from the series of shocks since 2020 — including the Covid-19 pandemic — and will continue to grow, the World Bank said the pace of growth will likely slow.



<h2 class="wp-block-heading" id="h-growing-debt-levels"><a></a>Growing debt levels</h2>



The World Bank flagged the significant increase of general government debt, as well as the rapid jump in corporate debt levels, particularly in China, Thailand and Vietnam.



It warned that high government debt levels can limit both public and private investment. Elevated debt could lead to higher interest rates, which would increase the cost of borrowing for private businesses, it said.



According to the World Bank’s calculations, a 10-percentage-point increase in general government debt to GDP is associated with a 1.2&nbsp;percentage point decline in investment growth. Similarly, a 10-percentage-point increase in private debt to GDP is associated with a 1.1&nbsp;percentage point decline in investment growth, it said.



The bank also noted relatively high levels of household debt in China, Malaysia and Thailand compared to other emerging markets. High household debt can have a negative impact on consumption, since more income would be used to service debts, which could lead to cuts in spending.



A 10-percentage-point increase in household debt would decrease consumption growth by 0.4 percentage point, the World Bank said.



As it stands, the World Bank said household spending is still below pre-pandemic trends in the developing East Asia and Pacific region.



In China, the current trend of retail sales is flatter than before the pandemic due to falling house prices, weaker household income growth, increased precautionary savings and household debt as well as other structural factors, such as an aging population.

107308902-1695967509603-gettyimages-1561204305-Hong_Kong_Urban_Skyline

World Bank downgrades developing East Asia growth forecast, weighed by a slowing China

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/SWAZI-820x547.jpg" alt="" class="wp-image-427786" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/SWAZI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/SWAZI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/SWAZI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/SWAZI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/SWAZI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/SWAZI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Election awareness posters are seen in a street ahead of Eswatini&#8217;s parliamentary elections in Mbabane, Eswatini, September 28, 2023 REUTERS/Esa Alexander</figcaption></figure>



MBABANE, Sept 29 (Reuters)&nbsp;&#8211;&nbsp;Voters in Eswatini will cast their ballots on Friday in parliamentary elections whose outcome will make little difference to the politics of a country controlled by Africa&#8217;s last absolute monarch. 



King Mswati III has ruled the southern African kingdom of about 1.2 million people since 1986, when he inherited the crown from his father, Sobhuza II.



Political parties are banned, but individual candidates can run for seats in the House of Assembly every five years.



The power of the politicians elected in these polls consists mainly of being able to make suggestions to the king, who is free to ignore them.



The election will be dominated by monarchists and other candidates sympathetic to the ruler, said Louw Nel, a senior political analyst at Oxford Economics Africa, in a note.



Two members of the previous parliament who supported the pro-democracy movement were jailed, and a third fled the country, he added.



&#8220;It is a misnomer to call what is happening in Swaziland elections,&#8221; Sivumelwano Nyembe, spokesperson for Eswatini&#8217;s Multi Stakeholder Forum, a pro-democracy activist group, said.



Anger against the governing system has been building for years, and&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2OB1AN&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">pro-democracy protests</a>&nbsp;turned violent in 2021.



Campaigners say the king has consistently evaded calls for meaningful reforms that would nudge Eswatini, which changed its name from Swaziland in 2018, in the direction of democracy.



Mswati&#8217;s opponents also say he uses public money to fund a lavish lifestyle which he shares with his 15 wives, while most of the country&#8217;s population is made up of struggling subsistence farmers.



The 55-year-old king denies being an autocrat and is unapologetic about his riches.



Eswatini is rated &#8220;Not Free&#8221; by the U.S.-based organisation Freedom House, which says the king exercises ultimate authority over all branches of the national government and effectively controls local governance through his influence over traditional chiefs.



The South African Development Community (SADC) has sent an electoral observation mission to Eswatini at the kingdom&#8217;s invitation, and will release a preliminary statement on Sunday.



(Reporting by Nellie Peyton and Carien du Plessis Editing by Tim Cocks and Peter Graff)

Eswatini holds parliamentary elections

Eswatini holds parliamentary elections under monarch’s control

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-820x547.jpg" alt="" class="wp-image-426336" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Bola Tinubu, President of Nigeria, arrives for the closing session of the New Global Financial Pact Summit, Friday, June 23, 2023 in Paris, France. Lewis Joly/Pool via REUTERS/File Photo</figcaption></figure>



LAGOS/LONDON, Sept 28 (Reuters) &#8211; Nigerian President Bola Tinubu&#8217;s lightning-fast reform push after taking office in May sparked hope that his administration would be a business-friendly antidote to mounting economic troubles facing Africa&#8217;s biggest economy.



Fast forward to more than 100 days in office, and the key planks of his economic overhaul &#8211; unshackling the naira from its rigid regime, and allowing fuel prices to rise &#8211; are coming loose.



The naira hit a record low of 1,000 to the dollar on the black market this week, widening the gap with the official rate, which stood at 785 on Thursday.



Petrol pump prices, meanwhile, have not budged since July &#8211; despite a more than 30% rise in oil prices.



Some now fear Tinubu will not be able to wean Nigeria off the costly policies that have stymied investment and throttled economic growth.



&#8220;Momentum just seems&#8230;almost in reverse,&#8221; said David Omojomolo, Africa economist at research firm Capital Economics.



Public anger is swelling as inflation spirals higher, however, and Nigeria&#8217;s two biggest workers&#8217; unions are planning an indefinite strike next week to protest over a cost-of-living crisis.



&#8220;Sentiment towards Nigeria has been continuing to sour as the initial reform momentum under President Tinubu&#8217;s administration has faded,&#8221; said Tellimer analyst Patrick Curran.



DOLLAR DELAY



For years, Nigeria has tightly controlled the official naira rate, even amid declines in the price of oil, sales of which bring in 90% of the country&#8217;s foreign currency supply.



But providing dollars at an artificially low rate has led to a yawning gap between official and black market rates, leaving businesses and investors unable to access dollars. The central bank has also created import restrictions aimed at reducing dollar demand.



Tinubu&#8217;s decision to let the official naira rate weaken saw it briefly converge with the black market. Last week, he assured investors they could take money out, touting a &#8220;reliable, one figure exchange rate of the naira.&#8221;



But the gap has widened to nearly 30% this week, and four sources told Reuters it was virtually impossible to get dollars from the central bank on an ad hoc basis.



The incoming central bank chief said on Tuesday that policymakers faced a nearly $7 billion backlog in foreign exchange demand; foreign airlines alone had $783 million in ticket sales trapped, the International Air Transport Association said.



This is one major factor keeping investors from putting money to work in Nigeria.



Another is negative real bond yields and the slow central bank response: 10-year local government bonds yield less than 15% while inflation is running above 25%.



&#8220;What they have done so far is not enough to attract domestic debt holders or foreign investors into their domestic debt market,&#8221; said Carlos de Sousa, portfolio manager at Vontobel Asset Management.



The tattered finances left by the previous administration have also been no help.



In August, the central bank published audited accounts for the first time since 2018, revealing that its $33 billion in FX reserves included a $19 billion commitment in derivatives &#8211; slashing the liquid amount of reserves.



JPMorgan calculated net FX reserves stood at $3.7 billion as of the end of 2022, &#8220;significantly lower&#8221; than prior estimates.



That news sent Nigeria&#8217;s international bond tumbling.



&#8220;Lower net FX reserves reduce the willingness to introduce a flexible exchange rate regime in the near term,&#8221; said JPMorgan&#8217;s Gbolahan S Taiwo.



The central bank has also kept other restrictions that businesses say make life tough, including a ban on using central bank foreign exchange to import 43 items.



&#8220;The government may have intended to make it a free market, but the CBN isn&#8217;t allowing it to be one,&#8221; said a Nigerian private equity investor who did not want to be named.



The delay in scrapping fuel subsidies is exacerbating the dollar crunch. Last year, subsidies cost 2% of gross domestic product, according to Fitch.



Despite being Africa&#8217;s largest oil exporter, Nigeria imports nearly all its fuel as it does not refine nearly enough to meet the demand of its 200 million citizens. In recent years, it has swapped crude for fuel, depriving it again of a source of U.S. dollars.



It is still using oil cargoes now to pay for fuel it imported previously, and a de-facto pump price limit set by state oil company NNPC LTD&#8217;s sale price means it is again the sole petrol importer.



Tellimer said Nigeria&#8217;s gasoline prices would need to rise 73% to align with global prices.



Analyst say Tinubu, elected with the narrowest margin since Nigeria returned to democracy in 1999 and facing inflation at nearly two-decade highs, lacks the social capital and mandate to push any harder.



&#8220;There is the concern that when the going gets tough&#8230;they will walk back on the reforms,&#8221; Omojomolo said.



(Additional reporting by Rachel Savage in Johannesburg; Editing by Hugh Lawson)


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FILE PHOTO: Summit for a new global financing pact takes place in Paris

Nigerian reform drive falters, threatening Africa’s biggest economy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Broken-infrastructure-drought-cause-power-rationing-in-Tanzania-official-820x547.jpg" alt="" class="wp-image-427763" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Broken-infrastructure-drought-cause-power-rationing-in-Tanzania-official-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Broken-infrastructure-drought-cause-power-rationing-in-Tanzania-official-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Broken-infrastructure-drought-cause-power-rationing-in-Tanzania-official-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Broken-infrastructure-drought-cause-power-rationing-in-Tanzania-official-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Broken-infrastructure-drought-cause-power-rationing-in-Tanzania-official-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Broken-infrastructure-drought-cause-power-rationing-in-Tanzania-official-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An aerial view shows an oil factory of Idemitsu Kosan Co. in Ichihara, east of Tokyo, Japan November 12, 2021, in this photo taken by Kyodo. Picture taken on November 12, 2021. Mandatory credit Kyodo/via REUTERS/Files</figcaption></figure>



DAR ES SALAAM, Sept 28 (Reuters) &#8211; Maintenance issues and climate change-induced water shortages have caused a 400-megawatt electricity shortfall in Tanzania, triggering power rationing across the East African nation, the state power supplier said.



Tanzania&#8217;s national grid, which has an installed capacity of more than 1,900 MW, was suffering from broken infrastructure at gas wells and gas-fired power stations, as well as reduced water levels at hydropower dams, said Gissima Nyamo-Hanga, managing director of the Tanzania Electric Supply Company (TANESCO).



TANESCO, which is wholly owned by the government, expects to complete maintenance operations and resolve the shortfall by the end of March next year, Nyamo-Hanga told reporters late on Wednesday.



Despite the government embarking on one of the fastest roll-outs of electricity access in Sub-Saharan Africa, only 38% of Tanzanians have power, according to the World Bank.



Nearly two thirds of Tanzania&#8217;s electricity is generated from natural gas, and around 30% from hydropower. The largest peak electricity demand ever recorded was 1,431 MW in May this year, up 7% from a year before, the energy ministry says.



&#8220;We expect that this problem will start easing within two weeks, and our plan is to reduce the shortage by an average of 100 MW a month,&#8221; Nyamo-Hanga said.



The 2,115 MW Julius Nyerere hydropower dam started filling with water in December last year and is anticipated to be finished by June 2024, more than doubling the country&#8217;s installed capacity, according to the energy ministry.



The government is engaged in several other power projects including a 150 MW solar farm as part of its goal to reach 5,000 MW capacity by 2025.



Nyamo-Hanga said the Nyerere dam was 92% complete, but that climate change was causing a shortage of rain and reducing water levels at existing dams. (Reporting by Nuzulack Dausen; Editing by Hereward Holland and Anil D&#8217;silva)

An aerial view shows an oil factory of Idemitsu Kosan Co. in Ichihara

Broken infrastructure, drought cause power rationing in Tanzania- official

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar-820x462.jpeg" alt="" class="wp-image-427512" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">In an aerial view, oil storage tanks are shown at the Enterprise Sealy Station on August 28, 2023 in Sealy, Texas.
Brandon Bell | Getty Images News | Getty Images</figcaption></figure>



Oil prices surged to their highest level in over a year during Asian trading hours, after crude stocks at a key storage hub fell to their lowest since July last year.



Crude inventories in Cushing, Oklahoma fell to 22 million barrels in the fourth week of September — hovering close to the operational minimum, according to data from the U.S. Energy Information Administration (EIA). That’s a drop of 943,000 barrels compared to the prior week.



The U.S. West Texas Intermediate futures touched $95.03 per barrel during Asia trading hours, marking the highest since August 2022. It was last trading at $94.61 per barrel. Global benchmark Brent rose 1.05% to $97.56 a barrel.



“Today’s price action seems to be Cushing driven, as it reaches a 22 million bbl low, the lowest level since July 2022,” Bart Melek, managing director of TD Securities, told CNBC.



If the inventories continue to dip below those levels, it’s going to be “rough” getting crude out into the market, Melek said on CNBC’s “Street Signs Asia.”



He forecasts that oil prices will continue to remain at “high level” for the rest of the year, with an upside risk if global oil cartel OPEC+ continues to keep supplies tight.



<h2 class="wp-block-heading" id="h-robust-deficit-in-sights"><a></a>‘Robust deficit’ in sights</h2>



The global oil markets are looking at a “pretty robust deficit” on top of an already significant shortfall this quarter, Malek said, citing the oil production cuts implemented by OPEC and its allies.



In September, OPEC+ kingpin Saudi Arabia&nbsp;<a href="https://www.cnbc.com/2023/09/05/saudi-arabia-to-extend-voluntary-cut-of-1-million-barrels-per-day-until-the-end-of-the-year.html">extended its 1 million barrel per day voluntary crude oil production cut</a>&nbsp;until the end of the year. It brings Saudi’s crude output to near 9 million barrels per day.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
We do think that prices could keep up near these levels for quite some time. But I don’t think it’s too permanent. And we might have seen the end of this rally.
<cite>Bart Melek MANAGING DIRECTOR, TD SECURITIES</cite></blockquote>



Additionally, Russia has pledged to extend its 300,000 barrels per day export reduction until the end of December.



Malek also highlighted how refinery throughputs will see a decline in the coming months as refinery maintenance season approaches. The&nbsp;<a href="https://www.lawinsider.com/dictionary/refinery-crude-throughput" target="_blank" rel="noreferrer noopener">refinery crude throughput</a>&nbsp;refers to the volume of crude oil a refinery can produce during a given period of time.



“We do think that prices could keep up near these levels for quite some time. But I don’t think it’s too permanent. And we might have seen the end of this rally.”



It will not be in OPEC’s interest if prices go a lot higher to triple digits, as they will be worried about long term demand destruction, Malek pointed out.



“We do think they will ultimately signal, as we get closer to the end of the year, that they may be very well done with these strong measures to limit supply,” he projected.



<figure class="wp-block-image"><img decoding="async" src="https://fm.cnbc.com/applications/cnbc.com/resources/styles/skin/special-reports/cnbci_promo/images/telegram_24.png" alt=""/></figure>



Get more from CNBC. Breaking news and updates on&nbsp;<a href="https://t.me/cnbci" target="_blank" rel="noreferrer noopener">Telegram</a>.



<a href="https://www.cnbc.com/2023/09/20/goldman-raises-international-oil-price-forecast-to-100-a-barrel.html">Forecasts</a><a href="https://www.cnbc.com/2023/09/15/oil-to-hit-100-analysts-expect-a-return-to-triple-digits-before-2024.html">&nbsp;</a><a href="https://www.cnbc.com/2023/09/20/goldman-raises-international-oil-price-forecast-to-100-a-barrel.html">for $100 per barrel oil</a>&nbsp;have been swirling on the horizon in recent days.&nbsp;<a href="https://www.cnbc.com/2023/09/20/goldman-raises-international-oil-price-forecast-to-100-a-barrel.html">Goldman Sachs recently raised</a>&nbsp;its 12-month Brent forecast from $93 per barrel to $100 on the back of “modestly sharper inventory draws,” the investment bank wrote in a recent note dated September 20.



“Overall, we believe that OPEC will be able to sustain Brent in an $80 to $105 range in 2024,” the Goldman report added, citing strong demand growth from the Asia region.
</blockquote>

107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar

Oil prices surge to highest level in more than a year

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-820x523.jpg" alt="" class="wp-image-427744" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-820x523.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-1536x980.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Soccer Football &#8211; Africa Cup of Nations &#8211; Final &#8211; Senegal v Egypt &#8211; Olembe Stadium, Yaounde, Cameroon &#8211; February 6, 2022 General view of the Africa Cup of Nations trophy on display before the match REUTERS/Mohamed Abd El Ghany/File Photo </figcaption></figure>



CAIRO, Sept 27 (Reuters)&nbsp;&#8211;&nbsp;Morocco were awarded the hosting of the 2025&nbsp;Africa&nbsp;Cup of Nations finals on Wednesday, replacing Guinea who were stripped of the right to host the tournament last year,&nbsp;while the 2027 rights were handed to a co-bid from Kenya, Tanzania and Uganda.



Morocco won by default after Algeria, Zambia and a joint bid from Benin and Nigeria all withdrew before the vote of the Confederation of&nbsp;African Football&#8217;s executive committee in Cairo on Wednesday.



The north&nbsp;African country was a runaway favourite and will see the decision as a boost to their hopes of co-hosting the 2030 World Cup with Portugal and Spain but victory for the joint East&nbsp;African bid for 2027 was a surprise.



It returns the finals to the region for the first time since 1976 as they beat Botswana, Egypt and Senegal in a vote. Algeria were also a candidate but withdrew on Tuesday.



Kenya had previously been awarded the hosting in 1996 but were stripped because of poor preparation. The country only recently had a long FIFA ban for government interference in the running of their football federation lifted.



“The tournament has to be spread around the regions and contribute to the development of football,” CAF president Patrice Motsepe said.



The 2025 finals will be only the second time that Morocco will host&nbsp;Africa&#8217;s most popular sporting event, almost four decades after the previous time in 1988.



<h2 class="wp-block-heading" id="h-vigorously-condemned">VIGOROUSLY CONDEMNED</h2>



Morocco were to have hosted the 2015 Cup of Nations finals but pulled out amid concerns over the spread of the Ebola virus in west&nbsp;Africa. It was a decision vigorously condemned at the time by CAF, who banned the country from&nbsp;African competition for two years.



But Morocco have since embarked on a diplomatic charm offensive across the continent, using football to develop ties. They have hosted a variety of CAF events at women’s and age group level and also allowed many&nbsp;African countries, who have been slapped with bans on hosting international games because of poor pitch or stadium conditions, to use stadia in Morocco.



When Morocco last hosted the Cup of Nations, it was an eight team event played in only two venues, Casablanca and Rabat.



For 2025 they have proposed using six stadiums, in Agadir, Casablanca, Fes, Marrakech, Rabat and Tanger.



The hosting of the Cup of Nations has had a checkered history in the last decade, starting with South&nbsp;Africa&nbsp;stepping into replace war-torn Libya in 2013.



In 2014 Guinea were award the right to host the 2023 finals, along with Cameroon (2019) and Ivory Coast (2021).



But Cameroon were declared not ready for the 2019 finals, so Egypt stepped in. Cameroon then hosted the 2021 edition, delayed by one year by the COVID-19 pandemic.



Ivory Coast were supposed the host the 2023 event in June but it has been postponed by six months because of concerns over the rainy season in West&nbsp;Africa.



The next Cup of Nations finals are being held from January 13-February 11.



(Writing by Mark Gleeson in Cape Town; Editing by Christian Radnedge, Bernadette Baum and Pritha Sarkar)

U72WAYHOJJPY5GXIUT4NSNDVHY-2

Soccer-Morocco and East African co-bid to host future Africa Cup of Nations finals

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="499" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-820x499.jpg" alt="" class="wp-image-427732" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-820x499.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-300x183.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-768x468.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-1536x936.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s Finance Minister Njuguna Ndung&#8217;u presents the Government Budget for the 2023/24 fiscal year inside the Parliament building in Nairobi, Kenya June 15, 2023. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, Sept 27 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s struggle with a heavy debt load and pressure on its hard currency reserves is not unique since other nations are facing the same situation, its finance minister said on Wednesday.



Njuguna Ndung&#8217;u was responding to a research note by U.S. investment bank JPMorgan which&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3B211Y&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">said</a>&nbsp;on Tuesday that the East African nation was &#8220;walking a tightrope&#8221; to avoid a crisis due to a maturing dollar bond and persistent currency weakness.



&#8220;All low- and middle-income countries are walking a tightrope given the current economic constraints globally. The Kenyan case is being featured because of the Eurobond 2024,&#8221; the minister told Reuters, referring to a bond maturing next June.



The upcoming Eurobond maturity &#8220;should not be a big deal&#8221;, Ndung&#8217;u said, since Kenya can use its reserves at the central bank to pay off the debt.



&#8220;That will not (however) solve the persistent negative shocks that low- and middle-income countries are facing. A more well mapped set of solutions will be needed,&#8221; he said.



During his speech to the United Nations General Assembly in New York last week, Kenya&#8217;s President William Ruto called for an extension of the tenor of low income countries&#8217; sovereign bonds, to help them avert a financial crisis.



He also called for the provision of a 10-year grace period, and for the creation of special drawing rights for those countries at the International Monetary Fund, to be allocated on a need basis, instead of the usual entitlement mechanism.



(Reporting by Duncan Miriri; Editing by Mark Potter)

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

‘Tightrope’ debt situation not unique to Kenya, finance minister says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XI6BVC5D2NOH3ML2JQE6YT7CPE-820x461.jpg" alt="" class="wp-image-427724" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XI6BVC5D2NOH3ML2JQE6YT7CPE-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XI6BVC5D2NOH3ML2JQE6YT7CPE-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XI6BVC5D2NOH3ML2JQE6YT7CPE-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XI6BVC5D2NOH3ML2JQE6YT7CPE-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XI6BVC5D2NOH3ML2JQE6YT7CPE-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XI6BVC5D2NOH3ML2JQE6YT7CPE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The new logo of the privatised Nigeria oil company is seen at the NNPC Mega Gas Station in Abuja, Nigeria August 30, 2022. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



LONDON, Sept 27 (Reuters)&nbsp;&#8211;&nbsp;Afrexim Bank is tapping oil traders to finance a much-needed $3 billion loan to Nigeria&#8217;s state oil company to help shore up the sliding naira currency, three sources told Reuters.



Afrexim approached traders in recent weeks&nbsp;seeking their&nbsp;interest in funding the oil-backed loan to state oil company NNPC LTD, the sources said. It is now working to craft terms that it will offer to the trading houses.



&#8220;There is a lot of interest, but they need to see terms,&#8221; one oil executive close to the talks told Reuters. The executive added that oil prices climbing past $90 per barrel would help drive interest in the deal.



Traders who put up cash would be repaid in physical cargoes of oil. The bank is working to determine what amount of oil to offer those traders in exchange for the financing, one of the sources said.



An NNPC spokesman did not respond to a request for comment. Afrexim did not immediately comment.



The loan, announced by NNPC in August, is a key part of efforts to support the naira, which hit an all-time low of 1,000 to the dollar on the black market on Tuesday. Officials have said that the central bank has a nearly $7 billion backlog in naira forwards. This is limiting the availability of dollars on the official market, forcing businesses and individuals to seek them on the black market.



Shortly after taking office in May, President Bola Tinubu announced long-sought reforms that allowed the official naira rate to fall versus the dollar and fuel prices to roughly triple. In June, the naira was close to the black market level, but the gap has since widened.



Tinubu also allowed pump prices to more than triple, which cut fuel smuggling and took pressure off state oil company NNPC to import petrol. But NNPC is still using oil cargoes to repay some of the oil trading firms that had contracts to supply gasoline in exchange for crude, limiting its immediate access to oil.



(Reporting By Libby George and Julia Payne; editing by Timothy Gardner)

FILE PHOTO: The new logo of the privatised Nigeria oil company is seen at the NNPC Mega Gas Station in Abuja

Afrexim turns to oil traders for $3 billion loan to Nigeria’s NNPC -sources

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG-820x462.jpeg" alt="" class="wp-image-427707" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Thilina Kaluthotage | Nurphoto | Getty Images</figcaption></figure>



Meta’s Threads real-time messaging app is struggling to attract new users like it did during its blockbuster July debut.



The Twitter clone now ranks near the bottom of the most popular social media platforms, ahead of only Tumblr, as measured by the number of U.S. users, according to Insider Intelligence’s first Threads forecast, published Tuesday.



Insider Intelligence said it expects Threads to have 23.7 million U.S. users in 2023, far behind Facebook, Instagram and TikTok, which have 177.9 million, 135.2 million and 102.3 million users, respectively. Its closest rival, X, will have 56.1 million U.S. users in 2023, the forecast said, which means that Threads will have less than half of the U.S. user base of the messaging app formerly known as Twitter.



For the U.S. market, the analyst firm said Threads will continue to “rank second-to-last among social networks” through 2025.



Meta did not respond to a request for comment.



The new forecast joins a growing list of third-party estimates from mobile analytics firms such as Sensor Tower and Similarweb that have recently documented declining usage of Threads.



When Threads debuted, it rapidly gained millions of users due in part to its easy sign-up process for existing Instagram users. The messaging app also benefited by being a mainstream alternative to X, which several analyst firms including Insider Intelligence have said is losing users amid the ownership of Tesla chief Elon Musk.



“Threads received an initial boost from Twitter’s missteps, but it can’t rely on X defectors to continue to grow,” Insider Intelligence principal analyst Jasmine Enberg said in a statement.



If Musk decides to charge all X users a monthly subscription fee, as he said during a recently livestreamed talk with Israeli Prime Minister Benjamin Netanyahu, Meta could have a “clearer avenue to monetize Threads,” Enberg said.



“Assuming Musk doesn’t backtrack, the move will likely alienate more X users and potentially increase advertiser interest in Threads,” Enberg added.



Still, Meta CEO Mark Zuckerberg has previously said that the company has no plans to monetize Threads until it’s bigger and more established.



The social networking giant has been releasing several new features for Threads intended to make it more compelling, such as a desktop version and a search tool. Indeed, both advertisers and creators have previously told CNBC that Threads needs certain features such as analytics tools to become a more robust platform that they will invest time and money into.



Enberg said Threads needs to establish an identity that’s “more than an extension of Instagram or an alternative to X” in order to become a major player in the social media market.



“TikTok was able to break through largely because it offered users a unique new social experience,” Enberg said, referring to the ByteDance-owned short-video app’s rise to prominence.

107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG

Meta’s Threads struggles to grow amid rivalry with Elon Musk’s X, ranking ahead of only Tumblr

<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>



Sept 26 (Reuters)&nbsp;&#8211;&nbsp;Concerns over U.S. monetary policy and growing jitters about China&#8217;s property sector pushed stocks in emerging markets to a six-month low on Tuesday, while investors awaited another likely rate cut by Hungary.



MSCI&#8217;s index for emerging market (EM) equities&nbsp;.MSCIEF&nbsp;was down 0.9% by 8:43 GMT, falling for a second straight day and hitting its lowest level since March.



China Evergrande Group 3333.HK tumbled for the second day in a row, down 8.1%, after a unit of the embattled property developer missed an onshore bond repayment. Hong Kong&#8217;s broader property shares index .HSMPI fell 2.2%.



Stocks in mainland China .CSI300 slipped 0.6%, while China&#8217;s yuan CNY=CFXS held steady against the dollar after the central bank set the official guidance rate at its widest against market estimates.



Both EM stocks and currencies&nbsp;.MIEM00000CUS, down 0.2% on Tuesday, have been pressured in recent days by hawkish signals from the Federal Reserve and other major central banks.&nbsp;The two asset classes&nbsp;are on track for losses in the third quarter.



Among other EM currencies, the Hungarian forint&nbsp;EURHUF=&nbsp;edged up 0.1% against the euro, coming off a near three-week low.



The National Bank of Hungary is expected to cut its one-day quick deposit rate by a further 100 basis points to 13% at 12:00 GMT, according to a Reuters poll, as inflation decelerates and the economy slows.



&#8220;(In terms of) what the inflation will do in 2024, we see a lot of upside risks and we are expecting inflation to stay above 5% on average,&#8221; said Peter Virovacz, senior economist at ING Bank Hungary.



&#8220;That&#8217;s why the National Bank of Hungary needs to remain hawkish and they need to keep the interest rate environment high. We are expecting the forward guidance to be hawkish today.&#8221;



The Turkish lira &lt;TRYTOM=D3 weakened to a record low beyond 27.236 against the dollar, due to inflationary pressure, bringing its year-on-year losses to more than 31%.



S&amp;P said late on Monday it was expecting tight monetary policy in emerging markets to have a more noticeable impact on demand in coming quarters and that they would likely grow below trend for the remainder of 2023 and into 2024.



South Africa&#8217;s rand ZAR= slipped 0.7%. Data showed the country&#8217;s composite leading business cycle indicator rose 0.1% month-on-month in July.



(Reporting by Amruta Khandekar; Editing by Anil D&#8217;Silva)

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Stocks tumble to near 7-month low, Forint gains on EU funds report

Nigeria’s labour unions suspend indefinite strike

Former Nigerian oil minister faces bribery charges in London court

Kenya picks Citi and Standard Bank to advise on maturing $2 bln Eurobond

Farmers plant more cocoa outside Africa as prices rally

Stocks inch up on first day of Q4, investors assess PMI data

Nigeria offers wage rise to state workers as strike looms

World Bank downgrades developing East Asia growth forecast, weighed by a slowing China

Eswatini holds parliamentary elections under monarch’s control

Nigerian reform drive falters, threatening Africa’s biggest economy

Broken infrastructure, drought cause power rationing in Tanzania- official

Oil prices surge to highest level in more than a year

Soccer-Morocco and East African co-bid to host future Africa Cup of Nations finals

‘Tightrope’ debt situation not unique to Kenya, finance minister says

Afrexim turns to oil traders for $3 billion loan to Nigeria’s NNPC -sources

Meta’s Threads struggles to grow amid rivalry with Elon Musk’s X, ranking ahead of only Tumblr

Stocks at six-month lows, forint inches up ahead of rate decision

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featured

Stocks tumble to near 7-month low, Forint gains on EU funds report

Nigeria’s labour unions suspend indefinite strike

Former Nigerian oil minister faces bribery charges in London court

Kenya picks Citi and Standard Bank to advise on maturing $2 bln Eurobond

Farmers plant more cocoa outside Africa as prices rally

Stocks inch up on first day of Q4, investors assess PMI data

Nigeria offers wage rise to state workers as strike looms

World Bank downgrades developing East Asia growth forecast, weighed by a slowing China

Eswatini holds parliamentary elections under monarch’s control

Nigerian reform drive falters, threatening Africa’s biggest economy

Broken infrastructure, drought cause power rationing in Tanzania- official

Oil prices surge to highest level in more than a year

Soccer-Morocco and East African co-bid to host future Africa Cup of Nations finals

‘Tightrope’ debt situation not unique to Kenya, finance minister says

Afrexim turns to oil traders for $3 billion loan to Nigeria’s NNPC -sources

Meta’s Threads struggles to grow amid rivalry with Elon Musk’s X, ranking ahead of only Tumblr

Stocks at six-month lows, forint inches up ahead of rate decision

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