<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SLHJX2P6XROTBKALLWANWZ4S4M-820x547.jpg" alt="" class="wp-image-549104" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SLHJX2P6XROTBKALLWANWZ4S4M-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SLHJX2P6XROTBKALLWANWZ4S4M-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SLHJX2P6XROTBKALLWANWZ4S4M-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SLHJX2P6XROTBKALLWANWZ4S4M-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SLHJX2P6XROTBKALLWANWZ4S4M-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SLHJX2P6XROTBKALLWANWZ4S4M-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Food supplies are pictured before a food aid distribution by volunteers of the Lagos food bank initiative in a community in Oworoshoki, Lagos, Nigeria July 10, 2021. REUTERS/Temilade Adelaja</figcaption></figure>



LAGOS, Nov 1 (Reuters)&nbsp;&#8211;&nbsp;Nigeria faces one of its worst hunger crises with more than 30 million people expected to be food insecure next year, a one third jump from this year due to economic hardship, a joint report by the government and United Nations said on Friday.



Nigeria, Africa&#8217;s most populous nation, is grappling with a cost of living crisis that led to deadly protests in August.



Economic hardship has worsened after President Bola Tinubu started austerity reforms, including devaluing the naira and ending a decades-old petrol subsidy, fuelling inflation.



The analysis, conducted twice a year in 26 states and the federal capital, projected that 33.1 million people would be food insecure by August next year. That compares with 24.8 million by end of this year.



&#8220;Several factors are driving this trend, but most prominently are economic hardship coupled with record high inflation, a record rise in food prices and record high transportation costs,&#8221; a statement accompanying the report said.



Chi Lael, World Food Programme spokesperson in Nigeria told Reuters that &#8220;economic decisions to strengthen the country in the long term, in the short term have felt like a direct attack on people&#8217;s wallets, hitting hardest every time they try to buy food.&#8221;



Finance Minister Wale Edun said on Thursday 5 million households had so far received cash handouts of 25,000 naira ($15.45), as part of the government&#8217;s programme to help the most vulnerable families.



High food prices have contributed the most to inflation, which advanced to 32.70% in annual terms in September from 32.15% in August.



Flooding and insecurity in northern states continued to hit agriculture, further driving up food prices beyond the reach of many families.



Last month&#8217;s floods destroyed an estimated 1.6 million hectares of crops, mainly in the northern food basket states, potentially causing production losses of a combined 1.1 million tonnes for maize, sorghum and rice, the joint statement said.



That is enough to meet the daily food needs of about 13 million people for a year.



In financial terms, the potential cereal crop losses amount to almost $1 billion in economic losses, the statement added.



($1 = 1,618.2600 naira)



(Reporting by MacDonald Dzirutwe; Editing by Ros Russell)

Food supplies are pictured before a food aid distribution by volunteers of the Lagos food bank initiative in a community in Oworoshoki, Lagos, Nigeria

Nigeria’s hunger crisis deepens with 33 million at risk, report says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="472" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/T2GG5DOWQBNVBM4YVJ2KDX65FE-820x472.jpg" alt="" class="wp-image-549004" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/T2GG5DOWQBNVBM4YVJ2KDX65FE-820x472.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/T2GG5DOWQBNVBM4YVJ2KDX65FE-300x173.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/T2GG5DOWQBNVBM4YVJ2KDX65FE-156x90.jpg 156w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/T2GG5DOWQBNVBM4YVJ2KDX65FE-768x442.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/T2GG5DOWQBNVBM4YVJ2KDX65FE-1536x884.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/T2GG5DOWQBNVBM4YVJ2KDX65FE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s Interior Minister Kithure Kindiki speaks during a press conference in Kilifi county, Kenya March 27, 2024. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Nov 1 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s new deputy president Kithure Kindiki was sworn in on Friday after a court lifted orders barring his inauguration following weeks of legal challenges by his predecessor, who was impeached by parliament last month.



The Senate voted to remove Deputy President Rigathi Gachagua from office in October on a handful of charges including gross violation of the constitution and stirring ethnic hatred &#8211; accusations that he rejects and has dismissed as politically motivated.



Kenya&#8217;s High Court had put a hold on Kindiki&#8217;s inauguration after Gachagua and his supporters filed over 30 court challenges to prevent his dismissal and replacement.



But the stay order was lifted on Thursday, with judges saying that the deputy president position should not remain vacant according to the constitution.



Gachagua&#8217;s legal battles extended months of political turbulence in the country, East Africa&#8217;s largest economy, that began with nationwide protests against unpopular tax hikes in June.



President William Ruto invited opposition members into his cabinet to create what he called a unity government in July in an attempt to ease tensions after demonstrators stormed parliament.



The political realignment also sidelined Gachagua, who had been a valuable asset for Ruto during his election campaign, helping secure a large block of votes from the populous Mount Kenya region. The two men have since fallen out.



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



Ruto appointed Foreign Minister Musalia Mudavadi as interior minister late on Thursday.



(Reporting by Hereward Holland; Editing by Ammu Kannampilly, Sonali Paul and Angus MacSwan)

FILE PHOTO: Kenyan authorities to begin handing over bodies of cult massacre victims in Kilifi

Kenya’s new deputy president sworn in after challenge from predecessor

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-820x546.jpg" alt="" class="wp-image-548948" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-1536x1023.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">CALLINGTON, ENGLAND &#8211; OCTOBER 17: Prince William, Prince of Wales, the Duke of Cornwall, arrives at the College Stoke Climsland for a visit and to learn about how the college is providing opportunities for young people in rural areas, on October 17, 2024 in Callington, Cornwall, England. (Photo by Justin Tallis &#8211; WPA Pool/Getty Images)</figcaption></figure>



LONDON, Nov 1 (Reuters)&nbsp;&#8211;&nbsp;Prince William jets to South Africa next week for the start of a four day trip which will take in the annual awards ceremony for the British heir-to-the throne&#8217;s multi-million dollar environmental prize.



William travels to Cape Town on Monday for a series of events to promote his Earthshot Prize, while he will also attend the United for Wildlife Global Summit and have a meeting with South African President Cyril Ramaphosa during his stay.



&#8220;His royal highness is looking forward to spending time with people from South Africa and across the wider continent, as well as celebrating the incredible climate solutions that will be spotlighted,&#8221; Kensington Palace said in a statement.



The trip will be the Prince Of Wales&#8217; first to South Africa since 2010, and he will be making the visit alone as his wife Kate is still managing a return to work after finishing a course of preventative chemotherapy for cancer.



William, who like his father King Charles has become a keen environmental campaigner, set up the Earthshot Prize in 2020, inspired by his last visit to Africa six years ago.



A nod to former U.S. President John F. Kennedy&#8217;s &#8220;moonshot&#8221; project which led to the 1969 lunar landing, its goal is to find innovations to combat climate and other green issues, and awards five winners 1 million pounds ($1.3 million) each to drive their projects.



The ceremony itself will be held on Nov. 6, hosted by U.S. actor Billy Porter and South African TV presenter Bonang Matheba, and will also feature performances by the likes of Nigerian pop star Davido and Tanzanian singer Diamond Platnumz.



Supermodel Heidi Klum and actress Nina Dobrev will be among the celebrities announcing the winners.



&#8220;I can’t wait to be part of an evening that celebrates creativity, human ingenuity, and artistry in all its different forms,&#8221; Porter said.



($1 = 0.7709 pounds)



(Reporting by Michael Holden; Editing by Kate Holton and Alison Williams)

The Duke of Cornwall To Visit Duchy College

Prince William heads to South Africa for green prize ceremony

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="516" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/D4444TONOVL5XOCAT6N7A747YM-820x516.jpg" alt="" class="wp-image-548729" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/D4444TONOVL5XOCAT6N7A747YM-820x516.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/D4444TONOVL5XOCAT6N7A747YM-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/D4444TONOVL5XOCAT6N7A747YM-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/D4444TONOVL5XOCAT6N7A747YM-768x483.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/D4444TONOVL5XOCAT6N7A747YM-1536x967.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/D4444TONOVL5XOCAT6N7A747YM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s Cabinet Secretary of the Ministry of Interior and National Administration Kithure Kindiki speaks during a joint press conference, with British Minister of State for Security Tom Tugendhat during his visit, in Nairobi, Kenya May 10, 2023. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Oct 31 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s high court on Thursday lifted orders barring the swearing-in of newly appointed deputy president Kithure Kindiki,&nbsp;whose&nbsp;predecessor&nbsp;has launched&nbsp;legal challenges over his removal from office by impeachment.



&#8220;The office of the deputy president should not remain vacant,&#8221; Judge Anthony Mrima said,&nbsp;after&nbsp;the filing of&nbsp;over&nbsp;30 court cases by Rigathi Gachagua against his ouster.&nbsp;The decision could be appealed to the Supreme Court.



Earlier this month the Senate voted to uphold five out of 11 charges against Gachagua, including gross violation of the constitution and stirring ethnic hatred &#8211; accusations that he has denied and dismissed as politically motivated.



President William Ruto subsequently chose Interior Minister Kithure Kindiki as his new deputy, but a court blocked his appointment.



Gachagua&#8217;s legal challenges extend months of political turmoil in Kenya, East Africa&#8217;s largest economy, that began with nationwide protests against unpopular tax hikes in June.



His impeachment followed a rift with Ruto that has soured their relationship since they ran together in an election two years ago.



(Reporting by Humphrey Malalo and Sonia Rao; writing by Elias Biryabarema; editing by Ammu Kannampilly, Alex Richardson and Mark Heinrich)

D4444TONOVL5XOCAT6N7A747YM

Kenya’s high court lifts order barring swearing-in of new deputy president

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108055459-1730370522435-gettyimages-2181307807-arroyofernandez-collecti241027_npBx9-820x461.jpeg" alt="" class="wp-image-548676" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108055459-1730370522435-gettyimages-2181307807-arroyofernandez-collecti241027_npBx9-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108055459-1730370522435-gettyimages-2181307807-arroyofernandez-collecti241027_npBx9-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108055459-1730370522435-gettyimages-2181307807-arroyofernandez-collecti241027_npBx9-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108055459-1730370522435-gettyimages-2181307807-arroyofernandez-collecti241027_npBx9-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108055459-1730370522435-gettyimages-2181307807-arroyofernandez-collecti241027_npBx9-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108055459-1730370522435-gettyimages-2181307807-arroyofernandez-collecti241027_npBx9.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Line-up of pumpkins in the Netherlands, on Oct. 27, 2024. Nurphoto | Nurphoto | Getty Images</figcaption></figure>



Inflation in the 20-nation euro zone rose to 2% in October, preliminary figures released by statistics agency Eurostat showed Thursday.



Economists polled by Reuters had forecast a headline figure of 1.9%. The September headline reading was revised down to 1.7% from 1.8% on Oct. 17, below market expectations.



The biggest upward pull in the headline rate came from food, alcohol and tobacco, where price rises accelerated to 2.9% from 2.4%.



Core inflation, which excludes those volatile components along with energy prices, was unchanged at 2.7%, slightly higher than the 2.6% expected. Services inflation — an important gauge of domestic price pressures — also held steady at 3.9%.



The euro was up 0.17% against the U.S. dollar shortly after the release, trading at a two-week high of $1.0873.



The fresh Thursday inflation print is seen as crucial in judging whether the European Central Bank could consider implementing a jumbo half-percentage-point cut in interest rates at its next meeting in December.



The central bank has so far trimmed rates three times this year, making quarter-point increments that altogether took the central bank’s key rate from 4% to 3.25%.



Markets are currently pricing another 25-basis-point reduction in December.



<h2 class="wp-block-heading" id="h-euro-zone-growth"><a></a>Euro zone growth</h2>



Traders are also considering the latest growth figures for the euro area, which showed better-than-expected 0.4% expansion in the third quarter, even as analysts predicted further weakness ahead.



The ECB said during its October meeting that the process of disinflation was “well on track” and that sluggishness in the euro zone’s economic activity had added to its confidence that inflation will not resurge dramatically.



“Hotter eurozone inflation, stronger growth and record low unemployment wipe out bets for a 50 [basis point] cut,” Kyle Chapman, foreign exchange market analyst at Ballinger Group, said in a note.



Chapman said that, while an uptick in consumer price growth was expected toward the end of the year, services inflation remained sticky.



“A big concern underpinning the risks of inflation undershooting the target was a potential tipping point with the labor market, the surprising resilience of which could be at risk of a sharp unwind in labor hoarding if consumption worsens. That concern is no longer so significant,” Chapman stressed, pointing to this week’s growth and employment figures.



“Back-to-back 25 [basis point] moves are the way to go. The need for below-neutral rates to rescue a contracting eurozone economy is fading from the discussion, and that negates the need to hurry the easing cycle, particularly with services inflation struggling to come unstuck.”

108055459-1730370522435-gettyimages-2181307807-arroyofernandez-collecti241027_npBx9

Euro zone inflation rises to higher-than-expected 2%, weakening case for jumbo rate cut

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108054622-1730265200794-gettyimages-2178145462-cfoto-automobi241017_nppCP-820x547.jpeg" alt="" class="wp-image-548613" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108054622-1730265200794-gettyimages-2178145462-cfoto-automobi241017_nppCP-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108054622-1730265200794-gettyimages-2178145462-cfoto-automobi241017_nppCP-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108054622-1730265200794-gettyimages-2178145462-cfoto-automobi241017_nppCP-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108054622-1730265200794-gettyimages-2178145462-cfoto-automobi241017_nppCP-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108054622-1730265200794-gettyimages-2178145462-cfoto-automobi241017_nppCP-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108054622-1730265200794-gettyimages-2178145462-cfoto-automobi241017_nppCP-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Robots manufacture auto parts at a factory in Ningde, China, on Oct. 17, 2024. Nurphoto | Nurphoto | Getty Images</figcaption></figure>



BEIJING — China’s official purchasing managers’ index for October came in at 50.1, in expansionary territory for the first time since April, according to National Bureau of Statistics data released Thursday.



The data beat expectations for 49.9, according to a Reuters poll. September’s reading was 49.8. The last time the PMI was above the 50-point line that determines contraction from activity was in April, with a reading of 50.4.



“I expect the economic momentum to improve moderately in Q4 as monetary and fiscal policies [loosen],” Zhiwei Zhang, president and chief economist, at Pinpoint Asset Management, said in a note.



China’s parliament standing committee is scheduled to meet next week, and is widely expected to release details on fiscal stimulus after the gathering ends on Nov. 8.



The sub-index for production came in at 52 for October, while that of new orders was 50. Raw materials inventory ticked up to 48.2, still in contraction territory, along with employment at 48.4, which was mildly better than the prior month.



The statistics bureau’s PMI for non-manufacturing activity rose to 50.2 in October. That was up from 50 in September but below August’s 50.3 print.



The employment portion of the non-manufacturing PMI climbed by 1.1 percentage points to 45.8.



A survey released Wednesday by the U.S.-based China Beige Book of 1,436 Chinese businesses between Oct. 18 and 25 found that manufacturing output improved from a year ago. New domestic and export orders also picked up, with export orders from the U.S. falling less sharply in October.



The Caixin China general manufacturing PMI for October is due out Friday, while the Caixin China general services PMI is scheduled for release Nov. 5.



China’s economic growth has slowed, dragged down by tepid consumer demand and a real estate slump. Exports have been a rare bright spot.



Stocks rallied after a series of high-profile stimulus announcements in the last several weeks, including a meeting led in late September by Chinese President Xi Jinping that called for strengthening fiscal and monetary policy support.

108054622-1730265200794-gettyimages-2178145462-cfoto-automobi241017_nppCP

China’s factory activity expands for the first time since April, official survey shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="539" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YNW7WLFOZJOXJBVUR4VLTBHO4A-1-820x539.jpg" alt="" class="wp-image-548558" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YNW7WLFOZJOXJBVUR4VLTBHO4A-1-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YNW7WLFOZJOXJBVUR4VLTBHO4A-1-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YNW7WLFOZJOXJBVUR4VLTBHO4A-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YNW7WLFOZJOXJBVUR4VLTBHO4A-1-768x505.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YNW7WLFOZJOXJBVUR4VLTBHO4A-1-1536x1009.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YNW7WLFOZJOXJBVUR4VLTBHO4A-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the Nation Centre and Lonrho Africa building in central business district in downtown Nairobi, Kenya February 18, 2022. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, (Reuters) &#8211; The executive board of the International Monetary Fund has approved the seventh and eighth reviews of Kenya&#8217;s program, the IMF said on Wednesday, paving the way for the cash-strapped government to access a $606 million loan tranche.



The East African nation and staff of the IMF announced an agreement on the seventh review of its $3.6 billion program in June, but completion of the review at the board level and the subsequent disbursement were disrupted by deadly protests.



More than 60 people were killed in the violent protests which forced President William Ruto to abandon the government&#8217;s finance bill, which contained a slew of tax hikes.



&#8220;Kenya&#8217;s economy remains resilient, with growth above the regional average, inflation decelerating, and external inflows supporting the shilling and a buildup of external buffers, despite a difficult socio-economic environment,&#8221; IMF First Deputy Managing Director Gita Gopinath said in a statement on Wednesday.



The IMF also called for improving governance and transparency in Kenya.



&#8220;The Kenyan authorities face a difficult balancing act of boosting domestic revenues to protect critical spending in priority areas while meeting heavy debt service obligations,&#8221; the IMF said.



The board review also included a component of lending to Kenya under its sustainability window, which is known as RSF.



The IMF&#8217;s support is seen as crucial for Kenya to be able to navigate its current liquidity challenges, which are mainly driven by high debt interest repayments.



Government officials have indicated that Kenya will seek another program with the IMF when the current one ends next April.



(Reporting by Duncan Miriri; Additional reporting by Kanishka Singh; Editing by Daniel Wallis)

YNW7WLFOZJOXJBVUR4VLTBHO4A (1)

IMF board approves Kenya’s reviews, unlocking access to $606 million

<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/GettyImages-2181228229-820x547.jpg" alt="" class="wp-image-548267" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Enoch Godongwana, South Africa&#8217;s finance minister, at a news conference ahead of delivering his mid term budget policy statement to the parliament in Cape Town, South Africa, on Wednesday, Oct. 30, 2024. After years of weak growth, economists expect National Treasury to revise its forecasts for the next two years upwards, largely because of improved power supply. Photographer: Dwayne Senior/Bloomberg via Getty Images</figcaption></figure>



CAPE TOWN, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s&nbsp;government&nbsp;on Wednesday&nbsp;forecast&nbsp;wider budget deficits and higher debt over the next three years, even&nbsp;as it anticipated better growth prospects due to improved electricity supply.



In the first budget review since the African National Congress&nbsp;(ANC)&nbsp;lost its ruling majority and formed a coalition government, the&nbsp;National Treasury&nbsp;said it saw the consolidated deficit at 5.0% of&nbsp;national output&nbsp;in the fiscal year that ends in March 2025, wider than the 4.5% deficit forecast in February.



For next fiscal year, the Treasury now sees a budget deficit of 4.3% of&nbsp;gross domestic product (GDP),&nbsp;up from&nbsp;a previous forecast of 3.7%.



The projections were worse than expected in a Reuters poll published last week. Economists in that poll predicted that the Treasury would announce a narrower 2024/25 deficit forecast of 4.4% and of 3.9% for 2025/26.



The rand currency turned weaker against the U.S. dollar after the new projections were announced.



The Treasury said&nbsp;in its Medium Term Budget Policy Statementthat&nbsp;&#8220;fiscal consolidation measures have limited, but not prevented, the widening of budget deficits and debt&#8221;.



Revenue collection is expected to be hit by&nbsp;a decline in fuel levy and import value-added tax collections, among&nbsp;other things, it said.



&#8220;In the absence of faster growth and in the face of external risks, tax revenue will remain under pressure, forcing us to make difficult&nbsp;decisions,&#8221; Finance Minister Enoch Godongwana said.



South Africa&#8217;s gross debt is now seen stabilising at 75.5% of GDP in 2025/26.



The economy is expected to expand&nbsp;by&nbsp;1.1% this year, down from a February estimate of 1.3%. Growth is expected to come in at 1.7% in 2025,&nbsp;versus a&nbsp;previous forecast of 1.6%.



<h2 class="wp-block-heading" id="h-infrastructure-focus">INFRASTRUCTURE FOCUS</h2>



Africa&#8217;s most industrialised economy has struggled to grow for more than a decade, constrained by inefficiencies at state power utility Eskom and port and freight rail operator Transnet.



The Treasury said the medium-term growth prospects were improving thanks to a suspension of rolling power blackouts and improved investor confidence following the formation of the coalition government in June, though lingering logistics bottlenecks remained a concern.



President Cyril Ramaphosa has touted infrastructure development as key to economic growth.



The Treasury said the government aimed to transform its approach to public sector infrastructure by doing more to attract private sector participation, including a focus on exploring alternative financing mechanisms.



(Reporting by Kopano Gumbi and Wendell Roelf in Cape Town, and Olivia Kumwenda-Mtambo and Tannur Anders in Pretoria;Additional reporting by Bhargav Acharya in Johannesburg;Writing by Olivia Kumwenda-Mtambo;Editing by Alexander Winning)

South Africa Announces Mid Term Budget Policy

South Africa sees wider deficits, higher debt in budget review

<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/WDAW6VDRWVMOBOWUM4K26AXQAE-820x547.jpg" alt="" class="wp-image-548216" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/WDAW6VDRWVMOBOWUM4K26AXQAE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/WDAW6VDRWVMOBOWUM4K26AXQAE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/WDAW6VDRWVMOBOWUM4K26AXQAE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/WDAW6VDRWVMOBOWUM4K26AXQAE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/WDAW6VDRWVMOBOWUM4K26AXQAE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/WDAW6VDRWVMOBOWUM4K26AXQAE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">General view of the venue as Saudi Arabia&#8217;s Minister of Energy Prince Abdulaziz bin Salman Al Saud attends the Future Investment Initiative (FII) in Riyadh, Saudi Arabia October 29, 2024. REUTERS/Hamad I Mohammed</figcaption></figure>



RIYADH, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;Saudi Arabia is in the advanced stages of talks about a stake in a copper mine in Zambia and is expecting a deal by the end of the year, the CEO of Saudi Arabia’s flagship mining company Ma’aden told Reuters on Wednesday.



“We are looking at Zambia, we are talking with a company there, with a mine there, so those are pretty advanced stage discussions,” CEO Robert Wilt, who is also vice chairman of Saudi Arabia’s international mining venture Manara Minerals, said.



&#8220;We&#8217;d have something wrapped up by the end of the year,&#8221; Wilt, speaking on the sidelines of the Future Investment Forum conference in Riyadh, said.



Sources told Reuters earlier this month that Manara, a joint venture between Ma&#8217;aden 1211.SE and Saudi Arabia&#8217;s $925 billion Public Investment Fund was closing in on a deal to buy a minority stake in Canadian miner First Quantum Minerals&#8217; Zambian copper and nickel assets.



The sources had said the Saudi company was in advanced talks to acquire between 15% and 20% equity in the Zambian assets with one of them estimating the stake at between $1.5 billion and $2 billion.



“Obviously, Africa is mineral rich with a lot of copper in the copper belt. So it just makes perfect sense, because the geographical proximity and our desire for copper to be looking in Africa,” Wilt said.



Manara has made significant investments in metals as part of Saudi Arabia&#8217;s efforts to secure minerals and expand Saudi Arabia&#8217;s mining sector.



The country&#8217;s growing mining industry is a key pillar in de-facto ruler Crown Prince Mohammed Bin Salman&#8217;s Vision 2030 programme to diversify the economy away from oil dependency.



Manara&#8217;s first major foray abroad was a deal to become a 10% shareholder in Vale&#8217;s $26 billion copper and nickel spin-off Vale Base Metals in 2023.



Wilt said copper was becoming a &#8220;top priority&#8221; for Manara because it was a base metal like aluminum that would be increasingly in demand with the energy transition.



&#8220;The niche battery metals, while important, are not as fundamental to the success of the development of the downstream, but copper is essential.&#8221;



(Reporting by Pesha Magid; writing by Maha El DahanEditing by Tomasz Janowski and Jane Merriman)

Future Investment Initiative (FII) in Riyadh

Saudi Arabia in advanced talks over Zambia copper mine stake, Ma’aden CEO 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/TW73TLV2SBLINDR3RCPU2BLTCE-820x547.jpg" alt="" class="wp-image-548180" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TW73TLV2SBLINDR3RCPU2BLTCE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view of the newly-commissioned Dangote Petroleum refinery in Ibeju-Lekki, Lagos, Nigeria May 22, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



LAGOS, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s Dangote oil refinery has a stockpile of 500 million litres of petrol, its billionaire founder said, countering claims by marketers who asserted they needed to supplement Dangote&#8217;s supplies with imports to meet fuel shortages.



Nigeria&#8217;s President, Bola Tinubu, had summoned oil regulators, the head of the state-owned NNPC, the finance minister, and Aliko Dangote to a meeting in Abuja on Tuesday.



The purpose was to review a policy requiring NNPC to sell crude oil to the Dangote refinery in local naira currency in an effort to ease foreign exchange pressure and help the mega refinery secure enough crude to meet its 650,000-barrel-per-day capacity.



Following the meeting, Dangote clarified that his business is not involved in retailing petrol and he should not be blamed for fuel shortages in Africa&#8217;s top oil producing country.



He also said that keeping fuel in storage tanks is costing him money.



&#8220;I expect the NNPC and marketers to stop importing. They should come and collect; we have everything they need,&#8221; said Dangote.



Two weeks ago, local fuel traders began increasing imports, claiming that the Dangote refinery was unable to meet domestic demand, exacerbating fuel shortages.



The Dangote Oil Refinery in Lagos began processing petrol in September, initially setting out to supply 25 million litres per day. The goal is to gradually increase production to 35 million litres daily, which Dangote believes will be sufficient to meet local demand.



At an oil conference in Lagos on Monday, however, the sector regulator said Nigeria’s daily petrol demand is between 45 and 50 million litres.



In a statement issued by a government spokesperson, President Tinubu urged stakeholders to focus on supplying enough petrol for local consumption to reduce dependence on imports.



He also directed them to use Afreximbank, the financial adviser for the naira crude sale scheme, as the settlement bank for naira pricing of crude and refined products.



Dangote previously had to buy crude on the international market, but it filed a complaint saying oil majors were blocking its access to locally produced oil by selling it above market price or claiming it was unavailable, forcing the refinery to rely on expensive imports.



Wale Edun, Minister of Finance and Coordinating Minister of the Economy, said the plan to sell crude in naira would remain in place, and the government would not intervene in determining the exchange rate for the oil sector.



Nigeria aims to end the importation of petroleum products once the Dangote Refinery reaches full operational capacity.



(Reporting by Isaac Anyaogu; Editing by Lincoln Feast.)

FILE PHOTO: A view of the newly-commissioned Dangote Petroleum refinery in Ibeju-Lekki, Lagos

Dangote says refinery has 500 mln litres of petrol in storage, can meet Nigeria’s demand

<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/SXFLCRRB7RPNVE5MXADNSSEI74-820x547.jpg" alt="" class="wp-image-548126" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Umbrella for Democratic Change (UDC) supporters leave the final rally in Tlokweng, east of Gaborone, Botswana October 29, 2024. REUTERS/Thalefang Charles</figcaption></figure>



GABORONE, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;Botswana started voting on Wednesday in an election that will determine whether President Mokgweetsi Masisi secures a second term, with slowing economic growth driven by declining diamond demand the central issue.



Masisi&#8217;s Botswana Democratic Party (BDP) has governed the southern African state since 1966 and remains the favourite to win despite the party&#8217;s falling popularity. Voters elect a National Assembly, with the largest party then choosing the president.



The BDP faces a fragmented opposition with its biggest challenge coming from the Umbrella for Democratic Change (UDC), a coalition led by lawyer Duma Boko. Two other parties have put forward candidates for president.



Voting started smoothly in the capital Gaborone, with long queues outside most polling stations. Over a million people are registered to vote in the country of some 2.3 million, according to the electoral commission.



BDP supporter Penny Mogale, 35, said she was voting for a continuation of entrepreneurship programmes under Masisi which she said had helped her to start a catering business.



&#8220;There are no jobs available but the government is giving us an opportunity to create jobs for ourselves. I want the party to be given a chance to continue with these initiatives,&#8221; she said.



A 26-year-old security guard at a supermarket in downtown Gaborone said he would vote for change at the end of his shift.



&#8220;We work long hours but we earn very little and the government has been refusing to raise the minimum wage,&#8221; said Teto Mosweunyane.



The opposition UDC has pledged to more than double the minimum wage from 1,500 Botswana pula ($112) per month to 4,000 pula if it wins.



Economic issues have dominated the campaign. Although Botswana is one of the wealthiest countries per capita in sub-Saharan Africa, a decline in the global diamond market saw its economic growth forecast for 2024 slashed to 1%.



Botswana is the world&#8217;s top producer by value of diamonds and has struggled to diversify its economy.



Opposition parties have criticized Masisi for the weakening growth rate as well as high levels of inequality and unemployment, while Masisi says his plans to create jobs were disrupted by the COVID-19 pandemic but remain on track.



Masisi came to power in 2018 through a planned transition after his predecessor Ian Khama served the maximum 10 years in office. He kept the job after a 2019 poll which the BDP won.



Election results are usually announced within a few days.



($1 = 13.4409 pulas)



(Reporting by Brian Benza; Writing by Nellie Peyton; Editing by Olivia Kumwenda-Mtambo, Christina Fincher and Ros Russell)

Botswana prepares for elections

Botswana heads to the polls with diamond downturn in focus

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-820x547.jpg" alt="" class="wp-image-449453" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Central Bank of Nigeria&#8217;s logo is seen on the headquarters building in Abuja, Nigeria January 22, 2018. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



LONDON, Oct 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank is prepared to use &#8220;whatever tools at our disposal&#8221; to manage inflation, its central bank chief Olayemi Cardoso said on Tuesday.



Inflation in Africa&#8217;s most populous country rose in September for the first time in three months, reaching 32.70% in annual terms, spurred by food and energy costs.



Cardoso told the FT Africa Summit in London that while he expected headline inflation to moderate in the coming months, food inflation was &#8220;proving stickier&#8221;.



He said the country &#8220;cannot tire&#8221; with its reform efforts.



(Reporting by Libby George in London; Writing by Elisha Bala-Gbogbo; Editing by Alexander Winning)

Central Bank of Nigeria’s logo is seen on the headquarters building in Abuja

Nigeria ready to use all tools to manage inflation, c.bank chief says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-820x540.jpg" alt="" class="wp-image-486141" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-1536x1012.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YPMFQQSS3NLHLJL3LP32C774LE-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A shopper walks past a Vodacom shop in Johannesburg, file. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Oct 29 (Reuters) &#8211; South Africa&#8217;s Competition Tribunal blocked Vodacom&#8217;s proposed merger with fibre group Maziv on Tuesday, a blow for the ambitions of the country&#8217;s biggest mobile operator to expand its fibre footprint nationwide.



The Competition Tribunal, which makes the final ruling on deals, said in a statement that its reasons for the decision will be issued in due course.



Vodacom announced in 2021 that it would pay 6 billion rand ($339 million) in cash and in certain fibre assets valued at 4.2 billion rand for a 30% stake in a newly formed company called Maziv, the parent company of Dark Fibre Africa and Vumatel.



But last year the Competition Commission recommended to the tribunal that the proposed merger be prohibited on the grounds that it is likely to substantially prevent or lessen competition in several markets.



The commission said the conditions offered by the merger parties did not fully address the resultant harm to competition.



($1 = 17.7024 rand)



(Reporting by Nqobile Dludla; Editing by Jan Harvey)

FILE PHOTO: A shopper walks past a Vodacom shop in Johannesburg

South Africa blocks Vodacom’s proposed merger with Maziv

<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/GIBV5AXYRRITDJHKIN34HKNOUM-820x547.jpg" alt="" class="wp-image-547812" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIBV5AXYRRITDJHKIN34HKNOUM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIBV5AXYRRITDJHKIN34HKNOUM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIBV5AXYRRITDJHKIN34HKNOUM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIBV5AXYRRITDJHKIN34HKNOUM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIBV5AXYRRITDJHKIN34HKNOUM-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIBV5AXYRRITDJHKIN34HKNOUM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo for Google is seen at a Google store in Manhattan, New York City, U.S., November 17, 2021. REUTERS/Andrew Kelly/File Photo</figcaption></figure>



LAGOS, Oct 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria based fintech Moniepoint has raised $110 million in new funding from investors including Google to scale up digital payments and banking solutions across Africa, the company said on Tuesday.



Moniepoint started operations in 2015 providing infrastructure and payment solutions for banks and financial institutions but has grown to also offer personal banking services.



The latest funding round was supported by existing investors London-based Development Partners International and private equity firm Lightrock. Google&#8217;s Africa Investment Fund and Verod Capital came in as new investors.



Sources close to the transaction said the new funding valued Moniepoint above $1 billion, giving it &#8220;unicorn&#8221; status &#8211; a term for tech firms with a valuation of a billion dollars or more.



The new capital would be used to speed up Moniepoint&#8217;s growth across Africa and build an integrated platform for businesses.



&#8220;This platform will include services such as digital payments, banking, foreign exchange (FX), credit, and business management tools, making it a one-stop shop for business solutions,&#8221; Moniepoint said.



Nigeria is the fastest growing fintech market in Africa, driven by its more than 200 million people, many who still lack access to financial services like banking.



Moniepoint started offering personal banking services in August last year.



The fintech says it processes over 800 million transactions, with a monthly value of more than $17 billion.



(Reporting by MacDonald Dzirutwe; Editing by Alison Williams)

FILE PHOTO: The logo for Google is seen at  a Google store in Manhattan, New York City, U.S.

Google among investors putting $110 million into Nigeria’s Moniepoint

<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/U7IY45MZ3FPMFN7YRQQBB75HS4-820x547.jpg" alt="" class="wp-image-547744" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/U7IY45MZ3FPMFN7YRQQBB75HS4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/U7IY45MZ3FPMFN7YRQQBB75HS4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/U7IY45MZ3FPMFN7YRQQBB75HS4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/U7IY45MZ3FPMFN7YRQQBB75HS4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/U7IY45MZ3FPMFN7YRQQBB75HS4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/U7IY45MZ3FPMFN7YRQQBB75HS4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view of the newly-commissioned Dangote petroleum refinery is pictured in Ibeju-Lekki, Lagos, Nigeria May 22, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



LAGOS, (Reuters) &#8211; Ghana could buy petroleum products from Nigeria&#8217;s Dangote Oil Refinery once the facility is operating at full capacity, cutting more expensive exports from Europe, the head of the country&#8217;s oil regulator said on Monday.



This could end monthly fuel imports from Europe of $400 million, Mustapha Abdul-Hamid, chairman of the National Petroleum Authority, Ghana said at the OTL Africa Downstream oil conference in Lagos.



&#8220;If the refinery reaches 650,000 bpd a day capacity, all that volume cannot be consumed by Nigeria alone, so instead of us importing as we do right now from Rotterdam, it will be much easier for us to import from Nigeria and I believe that will bring down our prices,&#8221; Hamid said.



The Dangote Oil refinery built by Nigerian billionaire Aliko Dangote is expected to operate at&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3JC04R&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">near</a>&nbsp;full capacity at the end of the year and analysts believe it could be fully operational in the first quarter of 2025.



Hamid said importing from Nigeria rather than Europe would bring down the prices of other goods and services by removing freight costs. Eventually, he said African countries would agree on a common currency that should dampen demand for dollars. Ghana&#8217;s economy, which grew by 6.9% year-on-year in the second quarter of 2024, has been driven largely by a strong expansion of the extractive sector which has boosted demand for fuel.



(Reporting by Isaac Anyaogu; Editing by Susan Fenton)

FILE PHOTO: A view of the newly-commissioned Dangote petroleum refinery is pictured in Ibeju-Lekki, Lagos

Ghana eyes fuel imports from Dangote oil refinery

<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/S2RIBSUDWFIIFC7QFNWKKKSNIU-820x547.jpg" alt="" class="wp-image-547511" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/S2RIBSUDWFIIFC7QFNWKKKSNIU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/S2RIBSUDWFIIFC7QFNWKKKSNIU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/S2RIBSUDWFIIFC7QFNWKKKSNIU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/S2RIBSUDWFIIFC7QFNWKKKSNIU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/S2RIBSUDWFIIFC7QFNWKKKSNIU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/S2RIBSUDWFIIFC7QFNWKKKSNIU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man counts Nigerian naira notes in a market place in Yola, Nigeria, February 22, 2023. REUTERS/Esa Alexander/File Photo</figcaption></figure>



ABUJA, Oct 28 (Reuters)&nbsp;&#8211;&nbsp;The central bank of Nigeria has signed an agreement with the International Finance Corp to expand local currency financing for Nigerian businesses and cut foreign exchange risks, the agencies said in a statement on Monday.



The IFC, a World Bank Group member, aims to &#8220;significantly scale up&#8221; its financing in Nigeria, targeting over $1 billion in the coming years, the statement said.



The partnership will enable IFC to manage currency risks and increase its investments in Nigeria&#8217;s naira currency across agriculture, housing, infrastructure, energy, small and medium-sized enterprises, and the creative industry.



&#8220;Many of these sectors require local currency financing, and IFC&#8217;s partnership with the (central bank) is a key tool in expanding access,&#8221; the statement said.



(Reporting by Elisha Bala-Gbogbo; Editing by Jan Harvey)

Man counts Nigerian naira notes in a market place ahead of Nigeria’s Presidential elections in Yola

Nigeria signs funding deal with IFC to boost naira currency financing

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108052833-1729838789268-gettyimages-2173221937-AA_23092024_1869906-820x461.jpeg" alt="" class="wp-image-547489" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108052833-1729838789268-gettyimages-2173221937-AA_23092024_1869906-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108052833-1729838789268-gettyimages-2173221937-AA_23092024_1869906-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108052833-1729838789268-gettyimages-2173221937-AA_23092024_1869906-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108052833-1729838789268-gettyimages-2173221937-AA_23092024_1869906-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108052833-1729838789268-gettyimages-2173221937-AA_23092024_1869906-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108052833-1729838789268-gettyimages-2173221937-AA_23092024_1869906.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">UK Finance Minister Rachel Reeves makes a speech during the Labour Party Conference that is held at the ACC Liverpool Convention Center in Liverpool, UK on September 23, 2024.  Anadolu | Getty Images</figcaption></figure>



LONDON — U.K. Finance Minister Rachel Reeves will deliver the government’s hotly awaited debut budget on Wednesday, putting to bed weeks of uncertainty over potential tax hikes and spending cuts.



The fiscal announcement — Labour’s first in almost 15 years — has been the source of much speculation, with Prime Minister Keir Starmer warning of “painful” decisions as his administration seeks to square what it says is a “black hole” in the public finances with its wider pro-growth agenda.



Reeves brought some clarity to that narrative on Thursday, by confirming that she would use her budget to announce a widely anticipated change to the U.K.’s debt rules in a bid to free up billions of pounds for investment. However, she did not specify exactly what the investment rule would change.



“We will measure debt differently. But, of course, we will put guardrails in place,” Reeves told Sky News Thursday, following her initial announcement in the Financial Times.



Reports suggest that the Treasury could target public sector net financial liabilities (PSNFL) in the U.K.’s measure of debt, rather than public sector net debt. The PSNFL measure takes in a wider account of the government’s balance sheet, including financial assets and liabilities, than public sector net debt. The Treasury declined to comment on the proposals.



In a note Friday, Goldman Sachs estimated that the changes could increase the government’s fiscal headroom by around £50 billion ($65 billion). Still, Goldman Sachs noted that the Treasury was unlikely to use all of that added leeway, and that any increase would be phased in gradually “over several years.”



“We think that the Chancellor would be very unlikely to use all the resulting fiscal space and would instead leave a much larger margin of headroom against the debt rule,” Goldman sachs said in the note.



As such, Reeves is still expected to rely heavily on a raft of tax changes to fill what she has described as a £100 billion spending gap ($129.6 billion) over the next five years. Here’s a look at what might change.



<h2 class="wp-block-heading" id="h-what-changes-to-expect"><a></a>What changes to expect</h2>



Labour has repeatedly ruled out increases to income tax, National Insurance social security payments, value-added tax (a sales levy) and corporation tax, insisting it would not renege on pledges outlined in its election manifesto.



More recently, however, the government has shifted its narrative to avoiding tax rises for “working people,” suggesting that changes for higher earners and employers could be on the table.



Starmer fanned speculation last week when he said in an interview with Sky News that people who own shares would not fall within his “definition” of working people. The Treasury later clarified that it was possible for a working person to have a small amount of shares.



The government has also failed to rule out potential changes to National Insurance tax on employers’ pension contributions, which would see business owners pay more to employ workers.



Reports suggest that Reeves could extend the freeze on personal income tax thresholds introduced by the former Conservative government. While the policy does not raise headline income tax rates, it is often dubbed a “stealth tax” as it ultimately drags workers into paying more tax as pay rises tip them into higher tax brackets.



Elsewhere, changes to inheritance tax (IHT) and capital gains tax (CGT) remain on the table as the government seeks to reduce wealth imbalances across the country. That comes even as plans to introduce new levies on Britain’s “non-doms” could be watered down amid concerns it would fail to raise revenues and instead spark a wealth exodus.



Analysts have expressed mixed views over the expected measures, noting that Reeves has a fine line to tread in balancing the books. Goldman Sachs estimated in its Friday note that the government could need to raise £25 billion annually to meet its spending targets.



“Our broad message is that Chancellor Reeves will attempt to navigate a tight set of public finances to meet her dual aims of avoiding material real term cuts in non-protected spending and to raise public investment. Tax increases will be needed to help achieve these,” Investec said in a note Thursday.



Duncan Edwards, CEO of BritishAmerican Business, warned the government against going too far with measures that could harm business.



“Raising taxes, making it more expensive to do business here, penalizing investment through raising capital gains tax and so on, looks like a strange approach to delivering that growth agenda,” Edwards told CNBC’s “Squawk Box Europe” on Friday.



<h2 class="wp-block-heading"><a></a>UK market jitters</h2>



Reeves has faced criticism for not holding the budget closer to Labour’s July 4 election, with critics saying the delay has cast a cloud of uncertainty over the economy and businesses.



Consumer confidence fell in October to its lowest level since March, when former chancellor Jeremy Hunt delivered his last budget, the fresh GfK showed Friday. Business confidence also slipped to an 11-month low this month, S&amp;P Global flash figures indicated Thursday.



Meanwhile, government borrowing costs have risen sharply as memories of former-Prime Minister Liz Truss’s catastrophic September 2022 “mini-budget” remain close to mind. U.K. bond yields climbed following Reeves’ debt rule announcement Thursday, with 10-year gilt yields hovering near a 16-week high at 4.24%. Still, analysts ruled out the possibility of a similar market meltdown.



“Is this going to be a Liz Truss moment? We don’t think so whatsoever,” Andrzej Szczepaniak, vice president of European economics at Nomura, told CNBC’s “Street Signs” on Friday.



“Actually, now the government can carve out investment,” he continued. “That’s actually fairly positive for the U.K. economy. It has a long structural underinvestment situation versus its peers in the G7.”



Such increases to infrastructure investment have been recommended by the International Monetary Fund, which on Thursday raised its growth outlook for the U.K. It now expects the economy to expand 1.1% in 2024, up from its earlier estimate of 0.7%.



“This level of endorsement to these changes will have helped contain bond market reaction and avoid a big strop-out,” Susannah Streeter, head of money and markets at Hargreaves Lansdown, wrote in a note Friday.



— CNBC’s Sam Meredith contributed to this report.

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