<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="552" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-820x552.jpg" alt="" class="wp-image-542826" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-820x552.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-768x517.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1536x1034.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-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 16 (Reuters)&nbsp;&#8211;&nbsp;Impeachment proceedings against Kenya&#8217;s deputy president are constitutional, a court said on Wednesday, clearing the way for the Senate to hold hearings and vote on his dismissal this week.



Kenya&#8217;s National Assembly voted on Tuesday last week to impeach the deputy president, RigathiGachagua, on 11 charges which included corruption, undermining the government and stirring ethnic hatred. Gachagua has denied all charges.



Gachagua has said the impeachment motion, backed by opposition lawmakers and allies of President William Ruto, was based on falsehoods that constituted a political lynching, according to court documents seen by Reuters.



He launched an appeal in the high court, but Judge Erick Ogolla said the process could go ahead.



&#8220;At this stage, the process is a lawful, constitutional process, and the Senate will conduct a trial where all the issues being raised before the court will be raised and determined at the moment,&#8221; the judge said in court.



The deputy president was Ruto&#8217;s running mate in their 2022 election win, helping secure vital votes from the populous central Kenya region. But the men have since fallen out and political alliances have shifted.



Ruto fired most of his cabinet and appointed members of the opposition to what he called a unity government after nationwide protests against tax increases in which more than 50 people were killed.



The Senate is expected to hold hearings on Wednesday and vote on Thursday. A two-thirds majority would be needed to dismiss Gachagua.



(Reporting by Edwin Okoth and Ammu Kannampilly; writing by George Obulutsa; Editing by Andrew Heavens)

FILE PHOTO: 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

Impeachment proceedings against Kenyan deputy president are constitutional, court says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/46QRGHAVVRL57L4K2LGPNJVTVI-820x547.jpg" alt="" class="wp-image-542795" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/46QRGHAVVRL57L4K2LGPNJVTVI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/46QRGHAVVRL57L4K2LGPNJVTVI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/46QRGHAVVRL57L4K2LGPNJVTVI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/46QRGHAVVRL57L4K2LGPNJVTVI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/46QRGHAVVRL57L4K2LGPNJVTVI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/46QRGHAVVRL57L4K2LGPNJVTVI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Jamie Dimon, chairman and CEO of JPMorgan Chase, speaks during the ceremony for placement of the final beam for JPMorgan Chase&#8217;s new global headquarters building at 270 Park Avenue in New York City, U.S., November 20, 2023. REUTERS/Brendan McDermid/File Photo</figcaption></figure>



NEW YORK, Oct 16 (Reuters) &#8211; JPMorgan Chase, the largest U.S. lender, plans to enter Kenya and Ivory Coast this year and grow its footprint in Africa, CEO Jamie Dimon told Reuters.



International markets are a growth area for JPMorgan, which has more than $4.2 trillion in assets and operates in over 100 countries. That compares with Citigroup, which does business in almost 180 countries and has the largest global footprint among U.S. banking giants.



&#8220;We want to add a country or two (enter or deepen presence) in Africa, every couple of years or so,&#8221; Dimon said by phone from New York on Friday before departing on a trip to Africa. The countries and pace of expansion have not previously been reported.



Dimon will hold meetings in Kenya, Nigeria and South Africa on the tour, Reuters reported last month.



&#8220;This will allow us to be on the ground in these countries which gives you a lot more local knowledge and relationships,&#8221; Dimon said.



&#8220;And when you do it, you basically will cover the government, maybe some big government enterprises and the multinationals that are going in there with traditional banking services,&#8221; he added.



In Kenya and Ivory Coast, the bank will focus on commercial and investment banking, treasury services, and possibly some lending, Dimon said. In those two countries, it has no immediate plans to offer asset and wealth management (AWM) services, which are already available in South Africa and Nigeria.



&#8220;We are not doing AWM now but that doesn&#8217;t mean it wouldn’t happen in the next few years,&#8221; Dimon said.



JPMorgan&#8217;s earlier aspirations to enter Ghana and Kenya in the last several year were thwarted by regulators, according to media reports.



On Monday, the Central Bank of Kenya said it authorized JPMorgan to establish a representative office there.



In the past, &#8220;the U.S. government was not very keen on banks expanding into different geographies, as this was just after the financial crisis,&#8221; Dimon said noting the U.S. is now more supportive.



It is a positive move if U.S. financial institutions expand abroad, and the government should support such endeavors to compete overseas, he said, citing the broad footprint of Chinese companies and saying that U.S. companies should also be in these places.



Major global lenders have adopted differing strategies for individual sub-Saharan markets, targeting the fastest-growing areas while seeking to distinguish themselves from local and regional competitors.



For instance, Standard Chartered has focused on Kenya. Its assets under management in the East African nation grew by a quarter last year to 185.5 billion Kenyan shillings ($1.4 billion), it said.



The expansion may not have a material impact on JPMorgan&#8217;s business in the near term, but it will be beneficial for the company and future leaders in the long run, Dimon said.



JPMorgan is among the top five international private banks by assets under supervision.



In the last five years, about 700 bankers have been involved in expanding into 27 new locations worldwide, generating $2 billion in revenue for its commercial and investment bank, executives told investors in May.



(Reporting by Nupur Anand in New York, additional reporting by Hereward Holland, David Lewis and Duncan Miriri in Nairobi, editing by Lananh Nguyen and Lincoln Feast.)

FILE PHOTO: Jamie Dimon, chairman and CEO of JPMorgan Chase

Jamie Dimon charts JPMorgan expansion plan into Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="602" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-820x602.jpg" alt="" class="wp-image-542577" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-820x602.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-300x220.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-122x90.jpg 122w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-768x564.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-1536x1129.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Victims of Cyclone Idai receive food aid at Siverstream Estates in Chipinge, Zimbabwe March 24 ,2019. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



GENEVA, Oct 15 (Reuters)&nbsp;&#8211;&nbsp;Millions of people across southern Africa are facing the worst food crisis in decades, the World Food Programme (WFP) said on Tuesday, warning that its ability to provide relief risks being stymied by funding shortfalls.



Amid unprecedented drought conditions, a record five countries &#8211; Lesotho, Malawi, Namibia, Zambia and Zimbabwe &#8211; have declared a state of disaster and called for international humanitarian support, the U.N. agency said. Angola and Mozambique are also badly affected and around 21 million children are malnourished.



&#8220;Unless we receive additional resources, millions of people risk going through the worst lean season in decades without assistance,&#8221; WFP spokesperson Tomson Phiri told a Geneva press briefing.



The agency is planning to provide food and, in some cases, cash assistance to more than 6.5 million people in the seven hardest-hit countries to cover the period until the next harvest in March.



The WFP said, however, that it had only received about a fifth of the $369 million it needed.



&#8220;Crops failed, livestock has perished and children are lucky to receive even one meal per day. The situation is dire, and the need for action has never been clearer,&#8221; said Phiri.



(Reporting by Emma Farge, editing by Ed Osmond)

LYNXMPEG0F1AI

Millions in southern Africa facing worst food crisis in decades, warns WFP

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="524" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LSUYGZLQFJNSJMK2KNF3ABV4GM-1-820x524.jpg" alt="" class="wp-image-542491" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LSUYGZLQFJNSJMK2KNF3ABV4GM-1-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LSUYGZLQFJNSJMK2KNF3ABV4GM-1-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LSUYGZLQFJNSJMK2KNF3ABV4GM-1-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LSUYGZLQFJNSJMK2KNF3ABV4GM-1-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LSUYGZLQFJNSJMK2KNF3ABV4GM-1-1536x982.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LSUYGZLQFJNSJMK2KNF3ABV4GM-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A customer compares prices while shopping at a Pick and Pay shop in East London, in the Eastern Cape province, South Africa, March 17, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Oct 15 (Reuters)&nbsp;&#8211;&nbsp;South African business confidence dipped in September on lower vehicle and retail sales and a drop in the value of building plans, but the overall trend since May&#8217;s election remains positive, data showed on Tuesday.



The South African Chamber of Commerce and Industry&#8217;s Business Confidence Index (BCI) fell to 110.2 in September, down from 111.5 in August but higher than the 109.1 recorded in July.



The BCI is released every two months.



Business sentiment rose gradually from June, when a broad coalition government was formed after the African National Congress lost its parliamentary majority in the election.



&#8220;The meagre dint of the BCI in September may however be ascribed to understanding the challenges and finding convergence between role players,&#8221; the South African Chamber of Commerce and Industry (SACCI) said in a statement.



Factors supporting sentiment last month included increased numbers of international tourists, higher export volumes and lower inflation.



Annual inflation fell to 4.4% in August, dropping below the midpoint of the central bank&#8217;s target range and encouraging it to cut interest rates for the first time in more than four years in September.



SACCI said it hoped the finance minister&#8217;s mid-term budget statement on Oct. 30 would &#8220;confirm the effort of resolving structural impediments in the economy&#8221;.



(Reporting by Tannur Anders; Editing by Alexander Winning)

A customer compares prices, in East London

South African business confidence dips, but post-election trend still positive

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="585" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5Q76XJF7GNO2PA6LYO2BS7QVVU-820x585.jpg" alt="" class="wp-image-542488" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5Q76XJF7GNO2PA6LYO2BS7QVVU-820x585.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5Q76XJF7GNO2PA6LYO2BS7QVVU-300x214.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5Q76XJF7GNO2PA6LYO2BS7QVVU-126x90.jpg 126w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5Q76XJF7GNO2PA6LYO2BS7QVVU-768x548.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5Q76XJF7GNO2PA6LYO2BS7QVVU-1536x1095.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/5Q76XJF7GNO2PA6LYO2BS7QVVU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A vendor looks on as she awaits customers at her stall in Mile 12 International Market in Lagos, Nigeria May 13, 2022. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, Oct 15 (Reuters) &#8211; Nigeria&#8217;s inflation rate rose in September for the first time in three months, advancing to 32.70% in annual terms from 32.15% in August, the statistics agency said on Tuesday.



Analysts had said the inflation slowdown in July and August could be short-lived, after three petrol price increases since early September that have roiled citizens already grappling with the worst cost-of-living crisis in a generation.



The renewed rise in inflation raises the prospect the central bank could choose to continue with its rate-hiking cycle, after five hikes so far this year.



The Central Bank of Nigeria&#8217;s next rate decision is due to be announced on Nov. 26.



Nigeria&#8217;s petrol price increases are part of President Bola Tinubu&#8217;s government&#8217;s efforts to exit a costly fuel subsidy programme that has strained the public finances of Africa&#8217;s most populous nation.



Other reforms launched by Tinubu to try to lift economic growth and woo investment include devaluing the country&#8217;s naira currency, another strong contributor to inflationary pressures alongside crop damage caused by floods in food-growing regions.



Data from the National Bureau of Statistics on Tuesday showed food inflation rose to 37.77% year on year in September from 37.52% the previous month.



Economists expect the disinflation process to resume in the coming months, potentially allowing the central bank to switch from a hiking to an easing cycle early next year.



(Reporting by Elisha Bala-Gbogbo in Abuja Additional reporting by Shamsuddin Mohd in Bengaluru; Editing by Alexander Winning and Barbara Lewis)

FILE PHOTO: A vendor looks on as she awaits customers at her stall in Mile 12 International Market in Lagos

Nigeria inflation rises for first time in three months

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="520" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/4SUMNVX4NJLMHGKOGXXS3REQBI-820x520.jpg" alt="" class="wp-image-542390" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/4SUMNVX4NJLMHGKOGXXS3REQBI-820x520.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/4SUMNVX4NJLMHGKOGXXS3REQBI-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/4SUMNVX4NJLMHGKOGXXS3REQBI-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/4SUMNVX4NJLMHGKOGXXS3REQBI-768x487.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/4SUMNVX4NJLMHGKOGXXS3REQBI-1536x974.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/4SUMNVX4NJLMHGKOGXXS3REQBI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man carries bread as he walks towards a grocery store, on a flooded street in Bamako, Mali September 23, 2024.REUTERS/Aboubacar Traore</figcaption></figure>



N&#8217;DJAMENA Oct 15 (Reuters)&nbsp;&#8211;&nbsp;Father-of-seven Dah Toubada Kadapia stood on a stack of homemade sandbags in his backyard in Chad&#8217;s capital N&#8217;Djamena, surrounded by floodwaters that locals say have risen higher than past years, causing more damage than ever.



Over the last few months, heavy rains have flooded every one of Chad&#8217;s 23 provinces, burst a dam in northern Nigeria, damaged ancient buildings in Niger&#8217;s desert town of Agadez, and killed more than 1,460 people in the countries on the fringes of the Sahara, according to U.N. aid agency OCHA.



On one hand they were annual rains flagged up in advance with forecasts of particularly heavy downpours, raising the question, said Kadapia, why officials were not better prepared.



&#8220;If only the authorities could find a solution in advance, so that every year it wasn&#8217;t just water, water, water and floods,&#8221; he said.



On the other, some of the inundations were not so predictable. Rains fell further north than usual, flooding desert areas that usually see little rainfall in Chad and elsewhere, exposing gaping holes in infrastructure and official preparedness plans.



Africa&#8217;s economic losses linked to&nbsp;floods&nbsp;have been rising. A&nbsp;report by&nbsp;the World Meteorological Organization, published in&nbsp;2021, said they jumped to $12.5 billion in 2010-19,&nbsp;more than double&nbsp;the&nbsp;average of the&nbsp;preceding three decades.



And experts say there is worse to come.



The Sahel is increasingly threatened by floods due to changes in natural climate patterns, greater rainfall intensity, poor urban planning and other causes, according to a 2021 study in the Journal of Hydrology, which noted that &#8220;widespread havoc and devastation are becoming commonplace&#8221;.



<h2 class="wp-block-heading" id="h-we-lost-everything">&#8216;WE LOST EVERYTHING&#8217;</h2>



A year after that paper was published, West and Central Africa was swept by one of the worst seasonal flooding disasters on record with more than 8.5 million people affected across 20 countries, according to OCHA.



This season, intense heat over the Sahara and other factors pulled the monsoon belt further north than usual, causing downpours in usually arid desert areas, said Wassila Thiaw, deputy director of the U.S. National Oceanic and Atmospheric Administration&#8217;s Climate Prediction Centre.



Compared with the 1991-2020 rainfall record, this July-September period was among the five wettest years in much of Niger, Chad and parts of western Mali.



Some areas in western Niger and Mali, and the border between Niger and Nigeria, saw more rainfall than in the calamitous 2022 season, Thiaw said.



Social media was awash with videos of roads turned to rivers, half-submerged trucks and&nbsp;displaced people desperately trying to salvage their belongings from flooded homes.



Mali declared a state of national disaster and pushed back the start of the academic year by a month as schools filled with families driven from their homes by the floods.



Grandmother Iya Kobla sought shelter after a river in the Mali&#8217;s capital Bamako burst its banks, swamped her fishing village in ankle-deep water, and destroyed some of its mud-built homes.



&#8220;We lost everything and now my grandchildren are all sick,&#8221; she said, next to makeshift beds on a school floor.



<h2 class="wp-block-heading" id="h-a-critical-moment">A CRITICAL MOMENT</h2>



Some of these events were foreseeable. Climate experts say global warming has increased the frequency and intensity of rain. West Africa is also going through a decades-long natural cycle of wetter&nbsp;monsoons following prolonged drought from the 1970s to 1990s, NOAA&#8217;s Thiaw said.



In 2023, the WMO and other international organisations launched an action plan to improve early warning systems for impending natural disasters in Africa, which has the lowest rate of access to such systems of anywhere in the world.



However, data show that the vulnerable communities most in need of these warnings are often the worst equipped to act on them, Andrew Kruczkiewicz, senior researcher at Columbia University&#8217;s Climate School, said.



In Chad, more than 40% of the population live in poverty. Meagre resources are stretched further by the presence of 2 million refugees, many living in basic camps.



&#8220;It&#8217;s incomplete to say if there were an early warning system, that action would have been taken and impact would be averted &#8230; There are many other elements that must be addressed,&#8221; Kruczkiewicz said, referring to the need for a pre-agreed plan, funding, community buy-in and other essentials.



&#8220;We&#8217;re at a critical moment and the West and Central Africa case exemplifies that, because the (rain) forecasts were there.&#8221;



(Additional reporting by Idrissa Sangare in Bamako; Editing by Andrew Heavens)

A man carries bread as he walks towards a grocery store, on a flooded street in Bamako

Monsoon havoc exposes West and Central Africa’s rising flood risks

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg" alt="" class="wp-image-493882" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., as IMF Managing Director Christine Lagarde meets with Argentine Treasury Minister Nicolas Dujovne September 4, 2018. REUTERS/Yuri Gripas</figcaption></figure>



WASHINGTON, Oct 15 (Reuters)&nbsp;&#8211;&nbsp;The world&#8217;s total public debt is set to exceed $100 trillion this year for the first time, and may grow more quickly than forecast as political sentiment favors higher spending and slow growth amplifies borrowing needs and costs, the International Monetary Fund said on Tuesday.



The IMF&#8217;s latest Fiscal Monitor report showed global public debt will reach 93% of global gross domestic product by the end of 2024 and approach 100% by 2030. That would exceed its 99% peak during COVID-19. It would also be up 10 percentage points from 2019, before the pandemic exploded government spending.



Released a week before the IMF and World Bank hold annual meetings in Washington, the Fiscal Monitor said there are good reasons to believe future debt levels could be well higher than currently projected, including a desire to spend more in the U.S., the world&#8217;s largest economy.



&#8220;Fiscal policy uncertainty has increased, and political red lines on taxation have become more entrenched,&#8221; the IMF said in the report. &#8220;Spending pressures to address green transitions, population aging, security concerns, and long-standing development challenges are mounting.&#8221;



<h2 class="wp-block-heading" id="h-campaign-spending-promises">CAMPAIGN SPENDING PROMISES</h2>



The IMF&#8217;s concerns about rising debt levels comes three weeks before a U.S. presidential election in which both candidates have promised new tax breaks and spending that could add trillions of dollars to federal deficits.



Republican presidential candidate Donald Trump&#8217;s tax cut plans would add some $7.5 trillion in new debt over 10 years, more than twice the $3.5 trillion added from the plans of Vice President Kamala Harris, the Democratic nominee, according to the central estimates the Committee for a Responsible Federal Budget (CRFB), a budget think-tank.



The report finds that debt projections tend to underestimate actual outcomes by sizeable margins, with realized debt to GDP ratios five years ahead averaging 10% higher than originally forecast.



And debt could be further increased significantly by weak growth, tighter financing conditions and greater fiscal and monetary policy uncertainty in systemically important economies such as the U.S. and China. The report includes a &#8220;severely adverse scenario&#8221; involving these factors that shows global public debt could reach 115% in just three years, 20 percentage points higher than currently projected.



<h2 class="wp-block-heading" id="h-spending-brakes">SPENDING BRAKES</h2>



The IMF repeated its calls for more fiscal consolidation, saying the current environment with solid growth and low unemployment was an opportune time to do so. But it said current efforts, averaging 1% of GDP over the six years from 2023 to 2029, are insufficient to reduce or stabilize debts with a high probability.



A cumulative tightening of 3.8% would be needed to achieve this goal, but in the U.S., China, and other countries where of GDP is not forecast to stabilize, substantially greater fiscal tightening would be needed.



The U.S. this month is expected report a fiscal 2024 deficit of about $1.8 trillion, or more than 6.5% of GDP, according to the Congressional Budget Office.



It said the U.S. and other countries where debt is projected to keep growing, including Brazil, Britain, France, Italy and South Africa, could face costly consequences.



&#8220;Postponing adjustment will only mean that a larger correction is needed eventually, and waiting can also be risky, because past experience shows that high debt and lack of credible fiscal plans can trigger adverse market reactions and can limit the room that countries have to deal with future shocks,&#8221; said Era Dabla-Norris, the IMF&#8217;s deputy fiscal affairs director.



She said cuts in public investment or social spending, tend to have a much larger negative impact on growth, than more poorly targeted subsidies such as for fuel. Some countries have room to broaden their tax bases and improve the efficiency of tax collections, while others can make their tax systems more progressive by taxing capital gains and income more effectively, Dabla-Norris said.



(Reporting by David Lawder; Editing by David Gregorio)

IMF logo is seen outside the headquarters building in Washington

IMF says global public debt to top $100 trillion, growth may accelerate

<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/NBCYKZR44FM2XJAGL3GJEWP3KA-820x547.jpg" alt="" class="wp-image-542097" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A person enters the JPMorgan Chase &amp; Co. New York headquarters in Manhattan, New York City, U.S., June 30, 2022. REUTERS/Andrew Kelly/File Photo</figcaption></figure>



NAIROBI, Oct 14 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s central bank&nbsp;said on Monday that it had authorised JPMorgan Chase&nbsp;JPM.N&nbsp;to establish a representative office in the East African country.



Representative offices of foreign banks in Kenya serve as marketing and liaison hubs for their parent banks and affiliates, the Central Bank of Kenya said in a statement.



The JPMorgan Chase representative office will contribute to the diversity of Kenya&#8217;s financial sector and catalyse trade and investments, the statement added.



Reuters reported last month, citing four sources familiar with the matter, that JPMorgan Chase&#8217;s CEO Jamie Dimon planned to travel to Africa in mid-October in a push by the biggest U.S. lender to expand on the continent.



(Reporting by Hereward Holland; Additional reporting by Bhargav Acharya; Editing by Alexander Winning)

A person enters the JPMorgan Chase & Co. New York headquarters in Manhattan, New York City

Kenya allows JPMorgan Chase to set up representative office locally

<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/CKKI5RXPNVLOZBPSD2MVSPIHEY-820x547.jpg" alt="" class="wp-image-542050" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/CKKI5RXPNVLOZBPSD2MVSPIHEY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/CKKI5RXPNVLOZBPSD2MVSPIHEY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/CKKI5RXPNVLOZBPSD2MVSPIHEY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/CKKI5RXPNVLOZBPSD2MVSPIHEY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/CKKI5RXPNVLOZBPSD2MVSPIHEY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/CKKI5RXPNVLOZBPSD2MVSPIHEY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view of a street in the city of Omdurman damaged in the civil war in Sudan, April 7, 2024. REUTERS/El Tayeb Siddig/File Photo</figcaption></figure>



NAIROBI, Oct 14 (Reuters)&nbsp;&#8211;&nbsp;The World Bank said on Monday it had lowered its economic growth forecast for sub-Saharan Africa this year to 3% from 3.4%, mainly due to the destruction of Sudan&#8217;s economy in a civil war.



However, growth is expected to remain comfortably above last year&#8217;s 2.4% thanks to higher private consumption and investment, the bank said in its latest regional economic outlook report, Africa&#8217;s Pulse.



&#8220;This is still a recovery that is basically in slow gear,&#8221; Andrew Dabalen, chief economist for the Africa region at the World Bank, told a media briefing.



The report forecast next year&#8217;s growth at 3.9%, above its previous prediction of 3.8%.



Moderating inflation in many countries will allow policymakers to start lowering elevated lending rates, the report said.



However, the growth forecasts still face serious risks from armed conflict and climate events such as droughts, floods and cyclones, it added.



Without the conflict in Sudan, which devastated economic activity and caused starvation and widespread displacement, regional growth in 2024 would have been half a percentage higher and in line with its initial April estimate, the lender said.



Growth in the region&#8217;s most advanced economy, South Africa, is expected to increase to 1.1% this year and 1.6% in 2025, the report said, from 0.7% last year.



Nigeria is expected to grow at 3.3% this year, rising to 3.6% in 2025, while Kenya, the richest economy in East Africa, is likely to expand by 5% this year, the report said.



<h2 class="wp-block-heading" id="h-commodities">COMMODITIES</h2>



The sub-Saharan Africa region grew at a robust annual average of 5.3% in 2000-2014 on the back of a commodity supercycle, but output started flagging when commodity prices crashed. The slowdown was accelerated by the COVID pandemic.



&#8220;Cumulatively, if that were to continue for a long time, it would be catastrophic,&#8221; Dabalen warned.



Many economies in the region were starved of public and private investments, he said, and a recovery in foreign direct investments that started in 2021 was still tepid.



&#8220;The region needs much, much larger levels of investments in order to be able to recover faster&#8230; and be able to reduce poverty,&#8221; he said.



Growth across the region is also hamstrung by high debt service costs in countries like Kenya, which was rocked by deadly protests against tax hikes in June and July.



&#8220;There are staggering levels of interest payments,&#8221; Dabalen said, attributing this to a shift by governments to borrow from financial markets in the last decade and away from the low-priced credit offered by institutions like the World Bank.



Total external debt among economies has risen to about $500 billion from $150 billion a decade and a half ago, he said, with the bulk owed to bond market investors and China.



Chad, Zambia, Ghana and Ethiopia went into default in the last four years and have overhauled their debt under a G20 initiative Common Framework. Ethiopia is still working to restructure its debt while the others have completed their debt restructuring.



&#8220;As long as these debt issues are not resolved, there is going to be a lot of &#8216;wait and see&#8217; games going on, and that is not good for the countries, and certainly not good for the creditors as well,&#8221; he said.



(Reporting by Duncan Miriri; Editing by Gareth Jones)

A street in the city of Omdurman damaged in the civil war in Sudan

World Bank cuts 2024 growth forecast for sub-Saharan Africa over Sudan

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108046955-1728864181139-gettyimages-2177123447-2177123447-820x461.jpeg" alt="" class="wp-image-542016" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108046955-1728864181139-gettyimages-2177123447-2177123447-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108046955-1728864181139-gettyimages-2177123447-2177123447-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108046955-1728864181139-gettyimages-2177123447-2177123447-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108046955-1728864181139-gettyimages-2177123447-2177123447-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108046955-1728864181139-gettyimages-2177123447-2177123447-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108046955-1728864181139-gettyimages-2177123447-2177123447.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A shipping container and gantry cranes at the Yangshan Deepwater Port in Shanghai, China, on Thursday, Oct. 10, 2024. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



BEIJING — China’s exports grew by 2.4% in September from a year ago in U.S. dollar terms, while imports rose by 0.3%, customs data showed Monday.



Both figures were well below expectations. China’s exports were forecast to have risen by 6% year-on-year in September in U.S. dollar terms, according to a Reuters poll. That would be slower than the 8.7% increase in August.



Imports were expected to have climbed by 0.9% in September from a year ago, according to the Reuters poll. That would be slightly faster than the 0.5% increase in August.



Exports have been a bright spot in China’s economy, which has otherwise been weighed down by lackluster consumer spending and a real estate slump.



Inflation data out Sunday pointed to further weakness in domestic demand.



The core consumer price index, which strips out more volatile food and energy prices, rose by 0.1% in September from a year ago. That’s the slowest since February 2021, according to the Wind Information database. Tourism-related prices fell by 2.1% year-on-year, despite the Mid-Autumn Festival in September and Golden Week holiday that kicked off Oct. 1.



China’s National Bureau of Statistics is scheduled to release third-quarter GDP on Friday, along with retail sales, industrial production and fixed asset investment for September.



Chinese authorities have ramped up stimulus announcements since late last month, while so far falling short on the fiscal policy details many investors have hoped for. Stocks in China have swung wildly as beaten-down markets debate the ultimate impact of Beijing’s economic support.



This is a breaking news story. Please check back for updates.

108046955-1728864181139-gettyimages-2177123447-2177123447

China’s exports and imports grew far less than expected in September

<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/GW7GRJQCGFP73CX62DFQGIUO4E-820x547.jpg" alt="" class="wp-image-541965" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GW7GRJQCGFP73CX62DFQGIUO4E-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GW7GRJQCGFP73CX62DFQGIUO4E-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GW7GRJQCGFP73CX62DFQGIUO4E-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GW7GRJQCGFP73CX62DFQGIUO4E-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GW7GRJQCGFP73CX62DFQGIUO4E-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GW7GRJQCGFP73CX62DFQGIUO4E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: An atrium is seen at the World Bank headquarters building in Washington, U.S., October 14, 2017. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



WASHINGTON, Oct 13 (Reuters)&nbsp;&#8211;&nbsp;The world&#8217;s 26 poorest countries, home to 40% of the most poverty-stricken people, are more in debt than at any time since 2006 and increasingly vulnerable to natural disasters and other shocks, a new World Bank report showed on Sunday.



The report finds that these economies are poorer today on average than they were on the eve of the COVID-19 pandemic, even as the rest of the world has largely recovered from COVID and resumed its growth trajectory.



Released a week before World Bank and International Monetary Fund annual meetings get underway in Washington, the report confirms a major setback to efforts to eradicate extreme poverty and underscores the World Bank&#8217;s efforts this year to raise $100 billion to replenish its financing fund for the world&#8217;s poorest countries, the International Development Association (IDA).



The 26 poorest economies studied, which have annual per-capita incomes of less than $1,145, are increasingly reliant on IDA grants and near-zero interest rate loans as market financing has largely dried up, the World Bank said. Their average debt-to-GDP ratio of 72% is at an 18-year high and half of the group are either in debt distress or at high risk of it.



Most of the countries in the study are in sub-Saharan Africa, from Ethiopia to Chad and Congo, but the list also includes Afghanistan and Yemen.



Two thirds of the 26 poorest countries are either in armed conflicts or have difficulty maintaining order because of institutional and social fragility, which inhibit foreign investment, and nearly all export commodities, exposing them to frequent boom-and-bust cycles, the report said.



&#8220;At a time when much of the world simply backed away from the poorest countries, IDA has been their lifeline,&#8221; World Bank chief economist Indermit Gill said in a statement. &#8220;Over the past five years, it has poured most of its financial resources into the 26 low-income economies, keeping them afloat through the historic setbacks they suffered.&#8221;



IDA normally is replenished every three years with contributions from World Bank shareholding countries. It raised a record $93 billion in 2021 and World Bank President Ajay Banga is aiming to exceed that with more than $100 billion in pledges by Dec. 6.



Natural disasters have also taken a greater toll on these countries over the past decade. Between 2011 and 2023, natural disasters were associated with average annual losses of 2% of GDP, five times the average among lower-middle-income countries, pointing to the need for much higher investment, the World Bank said.



The report also recommended that these economies, which have large informal sectors operating outside their tax systems, do more to help themselves. This includes improving tax collections by simplifying taxpayer registration and tax administration and improving the efficiency of public spending.



(Reporting by David Lawder; Editing by Andrea Ricci and Jacqueline Wong)

FILE PHOTO: Atrium is seen at World Bank headquarters in Washington

World Bank says 26 poorest nations in worst financial shape since 2006

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="661" height="464" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/IMG_5851.jpeg" alt="" class="wp-image-541686" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/IMG_5851.jpeg 661w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/IMG_5851-300x211.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/IMG_5851-128x90.jpeg 128w" sizes="auto, (max-width: 661px) 100vw, 661px" /><figcaption class="wp-element-caption">South African Finance Minister Tito Mboweni reacts as he arrives to deliver his budget speech at the parliament in Cape Town, South Africa, February 26, 2020. Reuters/Sumaya Hisham/File Photo</figcaption></figure>



JOHANNESBURG, Oct 13 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s former finance and labour minister and first Black central bank governor Tito Mboweni has died aged 65 following a brief illness, the presidency said late on Saturday.&nbsp;



Mboweni was an anti-apartheid activist as a student who later became democratic South Africa&#8217;s first labour minister from 1994 to 1999 under former President Nelson Mandela.&nbsp;



He then served as governor of the South African Reserve Bank for a decade from 1999, and later as finance minister from 2018 to 2021 under President Cyril Ramaphosa.



&#8220;His role in shaping our democratic future particularly during the dying days of apartheid, cannot be overstated,&#8221; said his party, the African National Congress, describing him as a trusted voice in the economic debates that framed the transition to democracy.



Mboweni helped establish the post-apartheid labour legislation that lay the foundation for collective bargaining and labour courts to uphold worker rights, the ANC said.&nbsp;



As central bank governor he oversaw the introduction of inflation targeting to help the bank achieve price stability.



He was a close ally of Ramaphosa and served on the ANC&#8217;s National Executive Committee, which handles party decisions.



&#8220;Given his sense of vitality and energetic and affable engagement with fellow South Africans, Dr Mboweni&#8217;s passing at 65 comes as a shock,&#8221; said Ramaphosa in a statement.&nbsp;



&#8220;We have lost a leader and compatriot who has served our nation as an activist, economic policy innovator and champion of labour rights.&#8221;



(Reporting by Nellie Peyton; Editing by Emelia Sithole-Matarise)

IMG_5851

South African former finance minister Tito Mboweni dies at 65

<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/HWPGQTLYHJLYXAPSSSZN7XH4SU-1-820x547.jpg" alt="" class="wp-image-541155" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HWPGQTLYHJLYXAPSSSZN7XH4SU-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HWPGQTLYHJLYXAPSSSZN7XH4SU-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HWPGQTLYHJLYXAPSSSZN7XH4SU-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HWPGQTLYHJLYXAPSSSZN7XH4SU-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HWPGQTLYHJLYXAPSSSZN7XH4SU-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/HWPGQTLYHJLYXAPSSSZN7XH4SU-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of the Pretoria skyline with smog in the air taken from the Union Buildings in Pretoria, South Africa, June 19, 2024. PHILL MAGAKOE/Pool via REUTERS/File Photo</figcaption></figure>



JOHANNESBURG, Oct 11 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s tax service said on Friday that 21.4 billion rand ($1.2 billion) had been paid out in the six weeks since a reform took effect allowing people to make partial withdrawals from their pension funds before retirement.



The &#8220;two-pot&#8221; pension policy reform is meant to support long-term retirement savings while offering flexibility to help fund members in financial distress.



It is expected to spur domestic demand and economic growth in the final months of 2024.



On Sept. 11, 10 days after the reform, the South African Revenue Service (SARS) said individuals had asked to withdraw 4.1 billion rand from their pensions.



On Friday SARS said it had received roughly 1.2 million savings withdrawal applications, up from 160,000 withdrawal applications over Sept. 1 to 10.



From Sept. 1 retirement contributions have been split into a savings component and a retirement component. A ratio of one-third of total contributions go into the savings component and two-thirds into the retirement component.



The savings component will be accessible at any time, but withdrawals must be a minimum of 2,000 rand and only one withdrawal may be made in a tax year. What is withdrawn will be taxed at the individual&#8217;s marginal tax rate, helping to boost the government&#8217;s tax take.



The central bank estimates withdrawals could be between 40 billion rand and 100 billion rand in the fourth quarter.



($1 = 17.4060 rand)



(Reporting by Tannur Anders: Editing by Alexander Winning and Ros Russell)

Inauguration of South Africa’s Cyril Ramaphosa as President at the Union Buildings, in Pretoria

South African tax service says $1.2 bln paid out in 6 weeks since pension reform

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="521" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KJWD4BFNJ5J7NHTBSNYAGTCVEE-820x521.jpg" alt="" class="wp-image-541092" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KJWD4BFNJ5J7NHTBSNYAGTCVEE-820x521.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KJWD4BFNJ5J7NHTBSNYAGTCVEE-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KJWD4BFNJ5J7NHTBSNYAGTCVEE-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KJWD4BFNJ5J7NHTBSNYAGTCVEE-768x488.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KJWD4BFNJ5J7NHTBSNYAGTCVEE-1536x977.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KJWD4BFNJ5J7NHTBSNYAGTCVEE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Russian President Vladimir Putin speaks at the BRICS Parliamentary Forum in Saint Petersburg, Russia July 11, 2024. Valeriy Sharifulin/Host Photo Agency BRICS-RUSSIA2024.RU/Handout via REUTERS/File Photo</figcaption></figure>



MOSCOW, Oct 11 (Reuters)&nbsp;&#8211;&nbsp;Most finance ministers and central bank chiefs from the BRICS group of countries did not attend a high-level meeting in Moscow on Friday ahead of a BRICS summit later this month, sending more junior officials instead, official documents showed.



Finance ministers from Egypt and the United Arab Emirates and the head of Iran&#8217;s central bank were present as Russian Finance Minister Anton Siluanov called for the creation of an alternative to the Western-dominated global financial system.



But finance ministers and bank chiefs from China, India and South Africa stayed away, sending deputies or more junior officials instead, a day after Kremlin aide Yuri Ushakov accused the West of pressuring countries not to attend the BRICS summit.



BRICS, originally comprising Brazil, Russia, India, and China, has expanded to include South Africa, Egypt, Ethiopia, Iran, the UAE, and Saudi Arabia.



The Moscow meeting is modeled on the Group of 20 schedule, where summits are preceded by meetings of top economic policy officials who outline proposals to be reviewed by leaders at the summit.



Russia, heavily sanctioned by the West over its war in Ukraine and cut off from international capital markets, is trying to woo BRICS partners with initiatives such as the creation of the BRICS Bridge international payment system.



&#8220;The creation of a cross-border payment initiative is our main task,&#8221; Siluanov told the officials. Russia is also pushing for the creation of a BRICS clearing centre, a rating agency, a reinsurance company, and a commodities exchange.



Siluanov has also proposed setting up a joint investment platform based on the group&#8217;s New Development Bank, its only functioning financial institution. The platform will use a new digital form of transactions, he said, without elaborating.



<h2 class="wp-block-heading" id="h-transaction-delays">TRANSACTION DELAYS</h2>



Russia has recently experienced delays in international transactions with its trading partners, including BRICS member countries, as banks in these countries fear punitive actions from Western regulators.



The payment problems have forced Russian companies to use barter deals and cryptocurrencies to facilitate payments.



China was represented in Moscow by Deputy Finance Minister Liao Min and Deputy Central Bank Governor Changneng Xuan, and India by Finance Ministry Secretary Ajay Seth.



The summit is scheduled for Oct. 22-24 in Kazan, capital of Russia&#8217;s Tatarstan region.



President Vladimir Putin&#8217;s foreign policy aide, Yuri Ushakov, said nine of the 10 BRICS states would send their leaders, though Saudi Arabia would send its foreign minister, Prince Faisal bin Farhan Al Saud. The Saudi delegation was absent from the Friday meeting.



(Reporting by Gleb Bryanski; Editing by Gareth Jones)

FILE PHOTO: Russian President Vladimir Putin speaks at the BRICS Parliamentary Forum in Saint Petersburg

Top BRICS economic officials stay away from Moscow meeting

<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/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_ZUQBEFZXKNNNLNYDP66YWDM6VI-820x429.jpg" alt="" class="wp-image-541073" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_ZUQBEFZXKNNNLNYDP66YWDM6VI-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_ZUQBEFZXKNNNLNYDP66YWDM6VI-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_ZUQBEFZXKNNNLNYDP66YWDM6VI-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_ZUQBEFZXKNNNLNYDP66YWDM6VI-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_ZUQBEFZXKNNNLNYDP66YWDM6VI-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_ZUQBEFZXKNNNLNYDP66YWDM6VI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via Reuters</figcaption></figure>



JOHANNESBURG, Oct 11 (Reuters)&nbsp;&#8211;&nbsp;The ANC&#8217;s main coalition partner the Democratic Alliance called on Friday for a review of a decision by prosecutors not to charge South African President Cyril Ramaphosa over a theft from his game farm that nearly cost him his position two years ago.



The scandal, dubbed &#8220;Farmgate&#8221;, came to light when a former intelligence official told police in June 2022 about the incident and accused Ramaphosa of money laundering, corruption and covering up the theft.



Ramaphosa, a wealthy businessman before he became president, has repeatedly denied wrongdoing.



The Democratic Alliance, a former opposition party which joined a coalition with the African National Congress party after the ANC lost its majority in an election in May, said the decision not to prosecute anyone over the Phala Phala matter lacked transparency.



&#8220;The Phala Phala scandal is much too important to simply disappear without thorough scrutiny and full interrogation of the reasons behind this outcome,&#8221; it said in a statement.



In a statement issued late on Thursday, the Director of Public Prosecutions in the Limpopo province said the decision was taken after a careful assessment of all available evidence presented to the prosecutors.



There was no reasonable prospect of a successful prosecution based on the evidence at the prosecutors&#8217; disposal, the statement said.



The country&#8217;s anti-corruption watchdog cleared Ramaphosa last year of a potential conflict of interest related to the affair, in which thieves made off with large sums of foreign currency hidden in furniture on his Phala Phala game farm in 2020.



Ramaphosa&#8217;s future hung in the balance in late 2022 after a report found evidence he may have committed misconduct over the scandal. But his party rallied around him, stopping an impeachment process from being launched. He was subsequently re-elected for another five years at the helm of the ANC.



The far-left opposition Economic Freedom Fighters (EFF), said it would not rest until Ramaphosa was held to account. The EFF has approached the constitutional court to try to revive impeachment proceedings against the president.



Ramaphosa has acknowledged there was a break-in at the farm in Limpopo, but he said the amount stolen was much lower than alleged and came from the sale of game.



Three suspects accused of being involved in the break-in appeared in court this week. Their case was postponed until next month.



(Reporting by Bhargav Acharya, Editing by Alexander Winning, Philippa Fletcher)

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S.Africa’s DA seeks review of decision not to charge Ramaphosa over ‘Farmgate’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108045816-1728543680505-gettyimages-1046968880-hv6b7443-820x461.jpeg" alt="" class="wp-image-540935" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108045816-1728543680505-gettyimages-1046968880-hv6b7443-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108045816-1728543680505-gettyimages-1046968880-hv6b7443-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108045816-1728543680505-gettyimages-1046968880-hv6b7443-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108045816-1728543680505-gettyimages-1046968880-hv6b7443-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108045816-1728543680505-gettyimages-1046968880-hv6b7443-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108045816-1728543680505-gettyimages-1046968880-hv6b7443.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Alexander Spatari | Moment | Getty Images</figcaption></figure>



LONDON — The U.K. economy returned to growth in August following two consecutive months of stagnation, providing a slight boost as the Labour government prepares to deliver its first budget later this month.



The economy grew 0.2% on a month-on-month basis, flash figures published by the Office for National Statistics showed Friday, meeting expectations of economists polled by Reuters.



It follows an economic flatlining in June and July after the U.K. recorded modest but steady expansion in almost every month this year. Britain emerged from a shallow recession at the start of the year.



Over the three months to August, Britain’s economic growth also expanded 0.2%, compared with the 0.5% recorded in the three months to July.



“The UK economy had a remarkable run through the first few months of 2024, at least if the monthly GDP figures are to be believed. But those same figures now show that this strength was short-lived,” ING’s Developed Markets Economist James Smith said in a note shortly after the release.



“The bottom line is that the economy still seems to be growing at a reasonable pace, but the 0.6/0.7% quarterly GDP readings we became accustomed to in the first two quarters of the year are not going to be repeated in the second half of the year. We’re looking for 0.2% growth in the third quarter overall.”



Sterling rose slightly against the U.S. dollar following the release, trading up 0.05% at $1.3067 by 8:56 a.m. London time. U.K. government bond yields, meanwhile, ticked lower, with the 10-year trading around 4.211%, having climbed sharply over recent days.



The U.K.’s dominant services sector showed slight growth of 0.1% in the month to August, while production and construction output rose by 0.5% and 0.4%, respectively.



Finance Minister Rachel Reeves welcomed the data, saying returning the economy to growth is the government’s “number one priority.”



“While change will not happen overnight, we are not wasting any time on delivering on the promise of change,” she said in a statement. The new Labour administration was voted into power in July during snap elections.



<h2 class="wp-block-heading" id="h-all-eyes-on-the-budget"><a></a>All eyes on the budget</h2>



The reading comes as Reeves is set to deliver her Autumn Budget at the end of this month, with tax hikes and spending cuts expected as she tries to overcome an estimated £22 billion ($29 billion) black hole in the public finances. The Conservative opposition party, which led the country until snap elections earlier this year, deny the gap.



ING’s Smith said that if the U.K. Treasury was hoping the strong growth in the first half of the year would unlock some “extra fiscal headroom” in the budget, “it is likely to be left disappointed.”



“Remember the key here is what the Office for Budget Responsibility projects for the UK economy. And like the BoE, they are unlikely to take much inference from the GDP figures so far this year. Indeed, if anything the OBR forecasts already sit at the more optimistic end of the spectrum,” he added.



The government is pitching its vision for an era of “national renewal,” as it attempts to inject some optimism into the public psyche after painting a gloomy picture of the state of the economy.



Lindsay James, investment strategist at Quilter Investors, said Reeves faces a “tricky balancing” to ensure her decisions don’t stifle further economic growth.



“With interest rates beginning to fall, the responsibility has shifted from the Bank of England to Rachel Reeves, who must now make critical fiscal decisions. She and the Prime Minister have indicated that ‘pain’ is necessary for future prosperity, but there is a real risk of overcorrection at the expense of economic growth,” she said.

108045816-1728543680505-gettyimages-1046968880-hv6b7443

UK economy returns to growth as Labour tees up all-important budget

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107071349-1654502627151-gettyimages-1233078794-CHINA_BEIJING-820x461.jpeg" alt="" class="wp-image-540904" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107071349-1654502627151-gettyimages-1233078794-CHINA_BEIJING-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107071349-1654502627151-gettyimages-1233078794-CHINA_BEIJING-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107071349-1654502627151-gettyimages-1233078794-CHINA_BEIJING-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107071349-1654502627151-gettyimages-1233078794-CHINA_BEIJING-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107071349-1654502627151-gettyimages-1233078794-CHINA_BEIJING-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107071349-1654502627151-gettyimages-1233078794-CHINA_BEIJING.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China’s Ministry of Finance, pictured here in Beijing in 2021, is refunding taxes and cutting fees to support economic growth. Yan Cong | Bloomberg | Getty Images</figcaption></figure>



Investors are on tenterhooks as Beijing prepares to deliver fresh policies over the weekend that could jumpstart its economy.



China’s Finance Minister Lan Fo’an is set to hold a press conference at 10 a.m. on Saturday local time on “intensifying” fiscal stimulus policies, the country’s State Council Information Office said.



With Beijing at risk of missing its full year economic growth target of 5%, some analysts are confident that authorities are ready to deliver major fiscal stimulus at the highly anticipated event, while others remain skeptical.



<h2 class="wp-block-heading" id="h-investors-on-edge"><a></a>Investors on edge</h2>



Investors had expected a fresh package to be announced during the National Development and Reform Commission’s press conference on Tuesday, which was held shortly after markets reopened following a weeklong holiday.



During that event, the chair of NDRC pledged a raft of actions to bolster the economy. But Zheng Shanjie stopped short of announcing any new major stimulus plans.



The move underwhelmed investors and sent a lengthy rally in the mainland Chinese markets into days of volatility.



With this second shot, the Chinese government has now realized that it’s facing a “whatever it takes moment” and it will do “whatever that is necessary to stop the bleeding of the economy, and to get things moving,” Chen Zhao, chief global strategist at Alpine Macro, told CNBC’s “Squawk Box Asia.”



Authorities are likely to affirm that at the press conference on Saturday, Zhao said.



Before the Golden Week holiday, Chinese officials unveiled a flurry of stimulus policies, including interest rate cuts, lower cash reserve requirements at banks, looser property purchase rules and liquidity support for stock markets.



Many investors and analysts viewed the move as a signal that Beijing was finally ready to take drastic action to revive its ailing economy, following a barrage of disappointing data and amid a slump in consumer confidence. At the time, Chinese major indexes began to rally, surging over 25% as investors cheered on the slate of stimulus measures.



Most economists expect some sort of additional stimulus this weekend, but there are many differing views on its size as well as the priorities of the package.&nbsp;Some have floated a figure between two and three trillion yuan (the equivalent of $282.8 billion to $424.2 billion), while others have suggested 10 trillion yuan ($1.4 trillion).



Speaking to “Street Signs Asia,” Chetan Ahya, chief Asia economist at Morgan Stanley, said the package will likely be focused on stimulating domestic demand, supporting recapitalization of banks, as well as local government debt restructuring.



The consumer stimulus measures could be targeted at social welfare spending, with an aim to free up more household savings, he said. And a small portion of the package could be dedicated to support consumer trade-in programs.



In a note, economists at Morgan Stanley predicted that China’s Ministry of Finance will deliver a modest supplementary fiscal package at the press conference — which they called “Beijing’s second chance to convince the market” after it undershoot earlier this week. However, the economists conceded that expectations are high.



“Higher size with clear consumption stimulus portion, or clear forward guidance for next year’s expansionary policy, would constitute a positive surprise,” the Morgan Stanley economists wrote.



Forward guidance on 2025 is critical and we expect another two to three trillion yuan widening in the augmented deficit but don’t think the size will be announced before end of 2024, they added.



<h2 class="wp-block-heading">In the trillions</h2>



Beijing needs to announce 10 trillion yuan in fiscal stimulus that’s focused on boosting consumption and removing large inventory in the property market, Morgan Stanley’s Ahya said.



“That’s not what we are saying they will do” but they need something like that “to get the economy out of deflation and ultimately create a sustained turn around in investors’ confidence,” he continued.



Beijing could be wary that an enormous stimulus package may send a signal to the public that there are more severe underlying economic problems, so they could phase them out into piecemeal announcements, Ahya added.&nbsp;&nbsp;



This time round, Ting Lu, chief economist at Nomura, expects the finance ministry will announce a package no larger than 3% of China’s GDP, which grew 5.2% to 126 trillion yuan in 2023.&nbsp;



The ministry may discuss additional funding through the issuance of government bonds, but the exact numbers could come later this month at the National People’s Congress’ standing committee meeting, Lu said. The NPC standing committee is China’s top legislature.



Reuters reported in late September that China had plans to issue special sovereign bonds worth about 2 trillion yuan ($284.42 billion) this year, with 1 trillion yuan primarily to revive domestic consumption and the other half to support local governments’ debt problems. 



A two trillion yuan bond issuance is unlikely to turn the economy around, said Alpine Macro’s Zhao, who believes that the next stimulus package needs to be around 4-5% of GDP to reverse lackluster consumption demand.&nbsp;



“The Chinese government is already backed to the corner, they are panicking. These are good things from the stock market’s point of view,” he said, insisting that the finance ministry will unveil a package on Saturday that could be “sufficient enough to make a bottom for the economy.”&nbsp;



But, a Chinese political veteran has cautioned that changes in fiscal policy needs to go through lengthy legal processes for approval, dampening Zhao’s hopes for this weekend.



Dong Yu, a former official on China’s top economic planning committee who now serves as vice president of China Institute for Development Planning at Tsinghua University, told local media in an article published Thursday that a fiscal stimulus package worth trillions of yuan will eventually come, but people need to “practice some patience.”

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Top BRICS economic officials stay away from Moscow meeting

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UK economy returns to growth as Labour tees up all-important budget

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