<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg" alt="" class="wp-image-433145" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi/</figcaption></figure>



NAIROBI, June 6 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s central bank is sticking to its 5.7% economic growth forecast for this year despite recent floods, its governor said on Thursday.



&#8220;Despite the recent flooding in some parts of the country, the economy is expected to remain strong in 2024 supported by the resilient services sector and robust performance of the agricultural sector,&#8221; Governor Kamau Thugge told a news conference.



Thugge added that the&nbsp;East African economy was&nbsp;estimated to have grown 5.8% in the first quarter of this year.&nbsp;Last year the economy grew 5.6%.



On Wednesday the central bank held its benchmark lending rate KECBIR=ECI at 13.0%, saying its current stance would ensure that inflation remained stable around the mid-point of its target range in the near term.



(Reporting by George Obulutsa; Editing by Tomasz Janowski and Alexander Winning)

XRWAJLZOAVK3DL2J5JMRWBBQ6A

Kenya’s central bank sticks to 5.7% growth forecast for this year despite floods

The super-thin battery that could power smart contact lenses

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="560" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/D7BPO7626ZOYRDBIVIP4MZP3IY-820x560.jpg" alt="" class="wp-image-494353" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/D7BPO7626ZOYRDBIVIP4MZP3IY-820x560.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/D7BPO7626ZOYRDBIVIP4MZP3IY-300x205.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/D7BPO7626ZOYRDBIVIP4MZP3IY-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/D7BPO7626ZOYRDBIVIP4MZP3IY-768x524.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/D7BPO7626ZOYRDBIVIP4MZP3IY-1536x1049.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/D7BPO7626ZOYRDBIVIP4MZP3IY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A truck drives amongst workings at the De Beers Voorspoed Diamond mine near Kroonstad, South Africa May 3, 2017. REUTERS/James Oatway/File Photo</figcaption></figure>



JOHANNESBURG, June 6 (Reuters)&nbsp;&#8211;&nbsp;The Botswana government may raise its shareholding in global diamond miner De Beers, President Mokgweetsi Masisi told JCK News, after parent company Anglo American&nbsp;AAL.L&nbsp;said it plans to spin off or sell the business.



The government owns a 15% stake in De Beers and Botswana accounts for 70% of the company&#8217;s annual rough diamond supply.



Anglo outlined a radical review of its business including a sale or divestment of the diamond business to focus on copper, iron ore and a fertilizer project in the UK to fend off a takeover from bigger rival BHP Group BHP.AX .



Masisi told JCK in Las Vegas that Anglo&#8217;s sale of De Beers would be &#8220;the best thing&#8221; if it happens.



The government could raise its shareholding in De Beers &#8220;if it&#8217;s attractive to,&#8221; Masisi told the online diamond news channel. The president in May told CNBC Africa that government would defend its interests in the diamond miner.



Among the plans Anglo could consider is an initial public offering for the diamond business, Reuters reported on May 14, citing sources.



Like other luxury goods, diamond prices have been hammered by a slump in global demand. De Beers has been limiting supply and offering flexibility to contracted customers. In February, Anglo announced a $1.6 billion impairment charge on De Beers. Anglo acquired De Beers in 2011, buying the Oppenheimer family&#8217;s 40% stake for $5.1 billion.



Masisi told JCK News Botswana&#8217;s ideal partner in De Beers would be a long-term investor. The government will try to keep the &#8220;bad guys out&#8221; and wants investors whose vision is aligned with the government&#8217;s.



&#8220;One of the characteristics of a bad owner is someone who has impatient capital,&#8221; Masisi said. &#8220;This industry requires somebody who is in it for the long-haul, because it has its ups and downs.&#8221;



(Reporting by Felix Njini; Additional reporting by Clara Denina. Editing by Jane Merriman)

FILE PHOTO: A truck drives amongst workings at the De Beers Voorspoed Diamond mine near Kroonstad

Botswana may raise De Beers stake as Anglo weighs spin-off

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-820x461.jpeg" alt="" class="wp-image-494337" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/107402021-1713288153679-gettyimages-648951146-dsc_7546.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Median CEO pay hit $16.3 million in 2023, or nearly 200 times the typical worker’s wages for the year, according to data analyzed for The Associated Press by Equilar.



Typical compensation packages for chief executives who run companies in the S&amp;P 500 rose nearly 13% last year, the AP reports. And roughly two dozen chief executives in the survey saw a pay bump of 50% or more.



Workers, on the other hand, saw wages rise by 5.2% in the last year, just above the rate of inflation, with some of the biggest gains going toward the lowest-paid workers. The median S&amp;P 500 employee earned $81,467 in 2023.



<h2 class="wp-block-heading" id="h-a-widening-ceo-to-worker-pay-gap">A widening CEO-to-worker pay gap</h2>



The CEO-to-worker pay gap grew in the last year as company boards scrambled to keep executives from quitting and businesses fared well in the stock market. In 2022, CEOs made roughly 185 times their typical worker; with the jump in 2023 numbers, CEOs now make roughly 196 times their employees.



The disparity is largely driven by the fact that many top executives are paid based on how well their company performs, and stock awards make up roughly 70% of their total compensation packages.



CEO pay is generally decided on by shareholders, who in the last four years have overwhelmingly voted in support of executive compensation plans, according to Equilar data.



Top bosses haven’t always made so much more than their workforce.



CEO pay has increased by 1,209% since 1978, compared with an 15% bump for the typical worker over this time period, according to the left-leaning Economic Policy Institute.



Typical worker wages have not increased as fast as CEO pay for a number of reasons, says Lawrence Mishel, a distinguished fellow at the EPI: high unemployment, globalization, the erosion of unions, low labor standards, the increase in noncompete clauses and domestic outsourcing, like shifting to a workforce of freelancers. Notably, the Federal Trade Commission recently voted to ban noncompete clauses, which impacts some 30 million American workers, though the move is facing legal action from business groups.



Whether CEOs are overpaid is “really up to shareholders to decide,” says Amit Batish, the senior director of content and communications at Equilar.



“One may argue that paying a CEO adequately is critical to the success of an organization, ensuring long-term stability and growth, particularly during economic downturns,” Batish tells CNBC Make It. If certain performance goals, especially financial growth, aren’t met, shareholders might express their dissatisfaction by cutting compensation.



As it stands now, Batish expects CEO pay to continue to outpace growth in median worker pay but notes that CEO stock compensation isn’t a guarantee — CEOs may not be able to cash in on their stock awards for years, if at all, unless they meet certain targets in their stock value or operating profits. Meanwhile, median employee pay is in cash salaries and bonuses, “making the comparison difficult at times.”



That being said, “the value of stock awards can also appreciate over time, bringing even more value to executives, while the value of cash for employees contends with inflation,” Batish says.



This widening gap could be a reason why Americans are dissatisfied with the economy, says Sarah Anderson, who directs the Global Economy Project at the progressive Institute for Policy Studies.



“Most of the focus here is on inflation, which people are really feeling, but they’re feeling the pain of inflation more because they’re not seeing their wages go up enough,” Anderson told the AP.



<h2 class="wp-block-heading" id="h-the-highest-paid-ceos"><a></a>The highest-paid CEOs</h2>



The highest-paid CEOs are concentrated in the communication services industry, the consumer defensive industry and health care. The CEO-to-worker pay gap is highest for retailers and other businesses where employees earn lower hourly wages.



The top-paid CEOs in the S&amp;P 500, according to the AP survey, include Hock Tan of Broadcom Inc., with a compensation package valued close to $162 million; William Lansing of Fair Isaac Corp, or FICO ($66.3 million); Tim Cook of Apple Inc. ($63.2 million); Hamid Moghadam of Prologis Inc. ($50.9 million); and Ted Sarandos, co-CEO of Netflix ($49.8 million).



Of the 341 CEOs included in the data, 25 are women. The highest-paid female CEOs include Lisa Su of Advanced Micro Devices ($30.3 million); Mary Barra of General Motors ($27.8 million); and Jane Fraser of Citigroup ($25.5 million).

107402021-1713288153679-gettyimages-648951146-dsc_7546

The typical CEO makes nearly 200 times more than their workers

<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/EYYBONFVFVOUPBL7XNUPPRYTNI-820x547.jpg" alt="" class="wp-image-494333" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EYYBONFVFVOUPBL7XNUPPRYTNI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EYYBONFVFVOUPBL7XNUPPRYTNI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EYYBONFVFVOUPBL7XNUPPRYTNI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EYYBONFVFVOUPBL7XNUPPRYTNI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EYYBONFVFVOUPBL7XNUPPRYTNI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EYYBONFVFVOUPBL7XNUPPRYTNI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: President of the African National Congress (ANC) Cyril Ramaphosa delivers an address to supporters during the political party’s final rally ahead of the upcoming election at FNB stadium in Johannesburg, South Africa, May 25, 2024. REUTERS/Alaister Russell/File Photo</figcaption></figure>



JOHANNESBURG, June 6 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand made a slight recovery early on Thursday, having slipped the day before when the African National Congress (ANC) said it would try to form a government of national unity following last week&#8217;s election.



At 0715 GMT, the rand traded at 18.90 against the dollar&nbsp;ZAR=D3, 0.2% stronger than its previous close.



The ANC lost its majority in the May 29 election for the first time since coming to power 30 years ago. It said on Wednesday that it had met with all interested parties keen to contribute ideas to form a government.



The party&#8217;s National Executive Committee will hold high-stakes internal talks later on Thursday to discuss options.



&#8220;Traders are likely to remain on edge until there is some certainty on the way forward, and we expect trading in the Rand to be fairly volatile and headline-driven in the short term,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



On the stock market, the Top-40&nbsp;.JTOPI&nbsp;index was up 0.1% in early trade.



South Africa&#8217;s benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was stronger in early trade, with the yield down 12 basis points at 10.610%.



(Reporting by Bhargav Acharya; Editing by Christina Fincher)

FILE PHOTO: President of the ANC Cyril Ramaphosa attends a rally ahead of the upcoming election at FNB stadium in Johannesburg

South African rand edges higher with focus on ANC talks

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-820x536.jpg" alt="" class="wp-image-494166" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-1536x1003.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows the logo of South Africa&#8217;s central reserve bank, at the reserve bank offices in Pretoria, South Africa, January 26, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, June 5 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s central bank said on Wednesday it expected the country&#8217;s financial system to remain resilient despite risks from worldwide elections, persistent geo-political tensions and weak domestic market conditions.



With more than 70 countries going to the polls this year &#8211; among them South Africa last month &#8211; the South African Reserve Bank said the possible changes in policy that might result had heightened market volatility.



The governing African National Congress (ANC) lost its majority for the first time in three decades in national and provincial elections on May 29.



The ANC said on Wednesday that it was leaning towards a government of national unity with several parties, which last happened at the fall of apartheid in 1994.



The rand has traded erratically since last week as news of the election outcomes filtered through to investors.



At 1331 GMT, the rand traded at 18.89 against the dollar ZAR=D3, around 0.9% weaker than its previous close after a press conference by the ANC where the party discussed its future path.



The party has held discussions with the business friendly Democratic Alliance and radical left Economic Freedom Fighters, among others.



The central bank said in the first edition of its Financial Stability Review, the biannual health check of the financial system, that high exposure to government debt and the weak fiscal position overall, undermined market resilience.



Steady progress had been made to strengthen the domestic financial safety net through the introduction of deposit insurance and a broader financial sector stress-test which included banks and insurance companies, the central bank said.



Globally, geo-political tensions and stickier inflation meant some economies were experiencing divergent recoveries, increasing market volatility.



Despite these risks, the central bank said it expected the financial system to remain resilient over the forecast period to May 2025.



(Reporting by Kopano Gumbi; Editing by Tannur Anders and Philippa Fletcher)

South Africa trims rate hikes as power cuts slash growth prospects

South Africa’s financial system stable despite headwinds, central bank says

Why EV Tariffs Won’t Stop Chinese Cars

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="555" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/MZUR3KWFJZK6VCE3ZP6JUOG6AM-820x555.jpg" alt="" class="wp-image-494118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/MZUR3KWFJZK6VCE3ZP6JUOG6AM-820x555.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/MZUR3KWFJZK6VCE3ZP6JUOG6AM-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/MZUR3KWFJZK6VCE3ZP6JUOG6AM-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/MZUR3KWFJZK6VCE3ZP6JUOG6AM-768x520.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/MZUR3KWFJZK6VCE3ZP6JUOG6AM-1536x1039.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/MZUR3KWFJZK6VCE3ZP6JUOG6AM.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s President William Ruto delivers a national statement at the World Climate Action Summit during the United Nations Climate Change Conference (COP28) in Dubai, United Arab Emirates, December 1, 2023. REUTERS/Thaier Al Sudani/File Photo</figcaption></figure>



NAIROBI, June 5 (Reuters)&nbsp;&#8211;&nbsp;Kenya plans to carry out another Eurobond buyback this year, which would bring the total amount of debt it has bought back in 2024 to about $2.5 billion, the World Bank said.



In February, Kenya&#8217;s government said it would buy back more than $1.4 billion of its $2 billion Eurobond maturing in June via a tender offer launched that month for a new bond.



The government&nbsp;said at the time&nbsp;the new bond would amortise in three equal instalments in 2029, 2030 and 2031, giving a weighted average tenure of six years.



It means that, by the end of June, Kenya will have to pay another $557 million to clear the $2 billion Eurobond.



The World Bank said Kenya&#8217;s government would have to be proactive in its liability management and focus on concessional borrowing to reduce its interest costs and amortisation pressure, especially between 2028 and 2031, to forestall future liquidity squeezes.



&#8220;To this end, the GoK (government) is considering another Eurobond buyback in 2024, bringing the total 2024 buyback



to approximately $2.5 billion, smoothing the amortisation profile&#8230;&#8221; the World Bank said in a report released last week after approving a&nbsp;$1.2 billion loan&nbsp;for Kenya.



&#8220;In addition, the GoK is considering liability management by leveraging sustainability instruments like debt swaps and sustainability-linked bonds.&#8221;



The shilling and stocks on the Kenyan bourse rallied in February, helped by increased confidence after the government sold the new&nbsp;Eurobond.



In a separate economic update on Kenya released on Wednesday, the bank forecast the economy would expand 5% this year after growing 5.6% in 2023.



(Reporting by George Obulutsa; Editing by Christina Fincher)

MZUR3KWFJZK6VCE3ZP6JUOG6AM

Kenya plans second Eurobond buyback in 2024, World Bank says

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



JOHANNESBURG, June 5 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand edged higher early on Wednesday, as focus remained on which coalition partner the African National Congress (ANC) would choose after losing its majority for the first time in last week&#8217;s election.



At 0650 GMT, the rand traded at 18.6875 against the dollar&nbsp;ZAR=D3, 0.16% stronger than its previous close.



The ANC is set to hold high-stakes internal discussions on Wednesday as coalition talks get underway. The party of liberation hero Nelson Mandela could partner with either the business friendly Democratic Alliance or the radical left Economic Freedom Fighters.



&#8220;Investors will require some positive news from the coalition discussions that will ease concerns about the sustainability of SA&#8217;s (South Africa&#8217;s) economy,&#8221; ETM Analytics said in a research note.



Domestic focus will also be on the S&amp;P Global, which will release its whole-economy purchasing managers&#8217; index survey at 0715 GMT, which will shed light on business conditions in Africa&#8217;s most industrialised economy in May.



South Africa&#8217;s benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was marginally weaker in early deals, with the yield up 0.5 basis point to 10.580%.



(Reporting by Bhargav Acharya; Editing by Andrew Heavens)

Illustration photo of South African rand

South African rand edges higher with focus on ANC coalition talks

What could a future with AI look like?

<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/DILFJA7KOJJ4VATMVNSVVR47UU-820x547.jpg" alt="" class="wp-image-494062" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DILFJA7KOJJ4VATMVNSVVR47UU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DILFJA7KOJJ4VATMVNSVVR47UU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DILFJA7KOJJ4VATMVNSVVR47UU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DILFJA7KOJJ4VATMVNSVVR47UU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DILFJA7KOJJ4VATMVNSVVR47UU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DILFJA7KOJJ4VATMVNSVVR47UU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Mauritanian President Mohamed Ould Cheikh El Ghazouani speaks as South Korean President Yoon Suk Yeol looks on during a joint news conference during 2024 Korea-Africa Summit in Goyang, South Korea, June 4, 2024. REUTERS/Kim Hong-Ji</figcaption></figure>



SEOUL, June 5 (Reuters)&nbsp;&#8211;&nbsp;Nearly 50 deals and agreements have been signed during South Korea&#8217;s first summit with leaders from 48 African countries to cooperate in areas such as mining, energy and manufacturing, South Korea&#8217;s industry ministry said on Wednesday.



Hyosung Corp&nbsp;004800.KS, a South Korean conglomerate, signed a contract to supply electric transformers to Mozambique worth $30 million, the ministry said in a statement.



The industry ministry also signed agreements to cooperate on critical minerals with Madagascar and Tanzania in order to secure supplies for industries such as batteries, it said.



The 47 agreements with 23 African countries were made during the summit as Asia&#8217;s fourth-largest economy seeks to tap the minerals and the vast export market in Africa.



&#8220;Despite its enormous potential, Africa still accounts for only 1-2% of South Korea&#8217;s trade and investment..,&#8221; South Korean President Yoon Suk Yeol told a gathering of about 200 political and industry leaders from African countries and South Korea at a business summit on Wednesday.



&#8220;My hope is that mutually beneficial resource cooperation will be expanded,&#8221; Yoon said.



Yoon pledged on Tuesday that South Korea would increase development aid for Africa to $10 billion over the next six years, and said will offer $14 billion in export financing to promote trade and investment for South Korean companies in Africa.



(Reporting by Joyce Lee; Editing by Ed Davies)

Mauritanian President Mohamed Ould Cheikh El Ghazouani speaks as South Korean President Yoon Suk Yeol looks on during a joint news conference during 2024 Korea-Africa Summit in Goyang

South Korea, African countries sign agreements on minerals, exports

<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/OYSLL7OT2BLMVOGKKGITWL2LUQ-820x547.jpg" alt="" class="wp-image-493908" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/OYSLL7OT2BLMVOGKKGITWL2LUQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/OYSLL7OT2BLMVOGKKGITWL2LUQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/OYSLL7OT2BLMVOGKKGITWL2LUQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/OYSLL7OT2BLMVOGKKGITWL2LUQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/OYSLL7OT2BLMVOGKKGITWL2LUQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/OYSLL7OT2BLMVOGKKGITWL2LUQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A money changer counts U.S. dollar banknotes at a currency exchange office in Ankara, Turkey September 27, 2021. REUTERS/Cagla Gurdogan/File Photo</figcaption></figure>



Looking for growth? Africa is the continent that every country, trade minister, and business owner should turn their heads toward.&nbsp;<a href="https://www.afdb.org/en/news-and-events/press-releases/africa-dominates-list-worlds-20-fastest-growing-economies-2024-african-development-bank-says-macroeconomic-report-68751" target="_blank" rel="noreferrer noopener">According to the Africa Development Bank</a>’s latest macroeconomic report, it confirmed that the African continent is set to maintain its position as the second-fast-growing region, just next to Asia. According to the report, next year “up to 41 countries across the continent will achieve an economic growth rate of 3.8% and in 13 of them, growth will be more than 1 percentage point higher than in 2023.” These are incredible statistics that demonstrate the growth opportunity across Africa due to the surging population and booming GDP growth.&nbsp; Africa is forecasted to outpace global growth averages throughout 2024.



The report also counted 11 African nations among the world’s twenty fastest-growing economies this year &#8211; enviable, especially to our neighbors in North America and Europe. Additionally, according to the&nbsp;<a href="https://www.imf.org/external/datamapper/NGDP_RPCH@WEO/ZAF/GHA/KEN/ETH/CIV/RWA" target="_blank" rel="noreferrer noopener">International Monetary Fund</a>’s GDP growth tracker, the African region significantly outpaces South America’s GDP growth, with a real GDP growth rate of 3.5% versus South America’s 1.4%. On the other hand, Africa still maintains a close range behind Asia, which leads with 4.4% to Africa’s 3.5%. However, in the coming years, according to&nbsp;<a href="https://www.statista.com/statistics/1224205/forecast-of-the-total-population-of-africa/#:~:text=Forecast%20of%20the%20total%20population%20of%20Africa%202020%2D2050&amp;text=According%20to%20the%20forecast%2C%20Africa's,as%20the%20most%20populous%20countries." target="_blank" rel="noreferrer noopener">Statista</a>, Africa will experience a significant population boom, with an estimated 2.5 billion inhabitants by 2050. This, in turn, will significantly close the population gap with Asia by 2100. As GDP growth typically grows as the population does, the GDP growth gap could be narrowed down within the next few years.&nbsp;



Needless to say, not only will there be tremendous population growth, but foreign direct investment, employment opportunities, standard of living, purchasing power, and more will grow exponentially as countries that have been listed as “commodity-dependent” will expand into diversified services fit for their young, digital population.



Why doesn’t money “follow” the data from Africa the way it does in other continents, like into Asia or South America? Often, companies considering expansion tell us that they see Africa as “more complex,” “more corrupt,” and more “volatile” than other emerging continents. &nbsp;



However, if you spend any time with a CEO or politician from Asia or South America &#8211; it’s clear that they also operate in markets with high barriers to entry and difficult operational environments.



Perception is the enemy of foreign investment in Africa.&nbsp; This is why the biggest new entrants to the continent in the last decade have come directly from Asia and South America &#8211; where they feel the market is similar, rather than more difficult.



The diversity of currencies, varying regional regulations, and lack of legacy financial infrastructure are hurdles to rolling out a pan-African business in a snap. However, fintechs have flooded the market to fill this gap for the last 15 years. &nbsp;



Now, those with the most longevity, experience, and long-term consistent growth are making it easy to do business across the continent.



These fintechs (and their supporting ecosystem of service providers) know that Africa’s currency diversity is a strength, not a weakness. They also know that African fintech infrastructure rivals, if not surpasses, many other markets.



And finally, there are more than enough professional services providers, banks, and other partners with which to scale in Africa.



So, while many new entrants to African commerce are quick to blame other reasons for their difficulties in scaling, the only major obstacle to their growth (aside from their own perceptions of Africa) is cost.



Cross-border payments still cost African and African-based businesses too much. African businesses shouldn&#8217;t have such a high price (in time or fees) to move into other African or G20 currencies or to make transfers across the continent or into Europe. Yet, they do.



At a recent gathering of corporate treasurers operating in Africa, the single biggest complaint was that the internal policies only allowed them to partner with a single bank. This policy and the outlook on what available partners should be is beyond outdated.



Now, these costs may surprise many businesses as they begin their expansion to African markets. However, it is not a problem of currency diversity, financial infrastructure, or service. Instead, the problem is the knock-on effect of how businesses in Africa have not been prioritized by non-African partners. Historically, limited choices in foreign exchange, cross-border transfers, and international market access still drive these higher costs of doing business today. &nbsp;



These costs have also made Africa’s fintech sector the most inventive. Our tradition of financial innovation, dating back to mobile money, directly results from African founders and fintechs actively challenging and dismantling this system. In every sector they’ve expanded into, they’ve provided more and better choices. This ecosystem of fintech and alternative financing is nearly identical to what resolved the higher costs of cross-border business in Asia and Latin America as well, and their economic growth proves it is worth the effort.



African businesses need more choice. The opportunity (and pressure) of international liquidity should help it finally arrive.



In doing so, however, we must be vigilant that the systems evolving to serve new expansions into Africa also work for African businesses. This means using partners that can facilitate direct African-to-African currency exchange. Not just to protect the exchange rate of the currencies themselves but also to maintain the speed of value exchange.



We cannot allow our system to evolve into one where business owners have days or weeks-long wait times to access their capital. We must also watch carefully to ensure that any business looking to capitalize on African value invests equally in African success. This should include hiring employees in Africa and encompass partnering with African companies, using African banks, and routing payments through African-licensed payments services providers (as well as holding and doing business in African currencies).



Africa is already a benchmark for fintech invention and is quickly becoming the ideal standard for economic growth. Within the next decade, we will be the global hub of international talent, as well as home to one of the most important consumer markets in the world. We can arrive at this future even more quickly if we can cut costs for African businesses while maintaining our high expectations for those companies that seek to join us here.&nbsp;

FILE PHOTO: A money changer counts U.S. dollar banknotes at a currency exchange office in Ankara

Cross-border payments are still costing businesses in Africa too much

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="333" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/hero-editors-letter-lighter-c-Daniel-Lievano-820x333.jpg" alt="" class="wp-image-493885" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/hero-editors-letter-lighter-c-Daniel-Lievano-820x333.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/hero-editors-letter-lighter-c-Daniel-Lievano-300x122.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/hero-editors-letter-lighter-c-Daniel-Lievano-160x65.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/hero-editors-letter-lighter-c-Daniel-Lievano-768x312.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/hero-editors-letter-lighter-c-Daniel-Lievano-1536x625.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/hero-editors-letter-lighter-c-Daniel-Lievano-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



“Prosperity, like peace, is indivisible,” US Treasury Secretary Henry Morgenthau Jr. said as he opened the Bretton Woods conference in 1944. It was, as he put it, an “elementary economic axiom” to help guide the founders of the IMF.



Today, these words are more important than ever. Our biggest challenges—from global warming to demographic and technological transformations—cannot be resolved by countries acting alone.



Yet just when we need greater international cooperation, we get the opposite: more fragmentation, conflict, and global disengagement; more zero-sum thinking that risks leaving our world poorer and less secure.



As we mark the IMF’s 80th anniversary, we ask: How can the Fund continue to adapt to the new realities and the changing needs of our 190 members? This&nbsp;<a href="https://www.imf.org/en/Publications/fandd?utm_medium=email&amp;utm_source=govdelivery">F&amp;D issue</a>&nbsp;seeks to provide answers that are inspiring and thought-provoking.



IMF Managing Director&nbsp;<a href="https://www.imf.org/en/Publications/fandd/issues/2024/06/Economic-possibilities-for-my-grandchildren-Kristalina-Georgieva?utm_medium=email&amp;utm_source=govdelivery">Kristalina Georgieva</a>&nbsp;strikes an optimistic note and calls for “21st century multilateralism”—a framework for international cooperation that’s more open and representative, with a better balance between advanced economies and the voices of emerging market and developing economies.



These voices are represented in this issue by top policymakers such as Barbados’ Prime Minister&nbsp;<a href="https://www.imf.org/en/Publications/fandd/issues/2024/06/The-IMF-Must-Lead-on-Debt-Sustainability-Mia-Amor-Mottley?utm_medium=email&amp;utm_source=govdelivery">Mia Mottley</a>, Kenyan President&nbsp;<a href="https://www.imf.org/en/Publications/fandd/issues/2024/06/A-Consensus-is-Forming-for-IMF-Reform-William-Ruto?utm_medium=email&amp;utm_source=govdelivery">William Ruto</a>, and&nbsp;<a href="https://www.imf.org/en/Publications/fandd/issues/2024/06/Latin-America-and-The-IMF-Pablo-Garcia-Silva?utm_medium=email&amp;utm_source=govdelivery">Pablo García-Silva</a>, a former vice-governor of Chile’s central bank. The economic fortunes of their regions depend, in many ways, on a better multilateral system, and they suggest ways in which the IMF can deliver that for its members.



On that point, proposals abound. <a href="https://www.imf.org/en/Publications/fandd/issues/2024/06/Geopolitics-Corroding-Globalization-Adam-S-Posen?utm_medium=email&amp;utm_source=govdelivery">Adam Posen</a> reckons that narrowing the IMF’s mandate to its core macroeconomic mission and giving it greater operational independence would make it more evenhanded. <a href="https://www.imf.org/en/Publications/fandd/issues/2024/06/Point-of-View-Reform-or-Risk-Irrelevance-Raghuram-Rajan?utm_medium=email&amp;utm_source=govdelivery">Raghuram Rajan</a> makes a related point: delegating more authority to the IMF’s management—coupled with reform to more fairly allocate quotas, the financial contributions paid by each member—could help bring a fragmented world together on critical issues.



Among these is&nbsp;<a href="https://www.imf.org/en/Topics/climate-change?utm_medium=email&amp;utm_source=govdelivery" target="_blank" rel="noreferrer noopener">climate change</a>. That brings us to&nbsp;<a href="https://www.imf.org/en/Publications/fandd/issues/2024/06/The-IMFs-Climate-Change-Debate-Masood-Ahmed?utm_medium=email&amp;utm_source=govdelivery">Masood Ahmed’s</a>&nbsp;piece, which considers the ongoing debate over the IMF’s proper role in addressing the climate threat.



The Fund, of course, has long adapted to change. The IMF’s&nbsp;<a href="https://www.imf.org/en/Publications/fandd/issues/2024/06/New-Surveillance-Tests-Ceyla-Pazarbasioglu?utm_medium=email&amp;utm_source=govdelivery">Ceyla Pazarbasioglu</a>&nbsp;shows how much the organization has evolved in its regular reviews of member economies and its regional and global analyses. In a similar vein,&nbsp;<a href="https://www.imf.org/en/Publications/fandd/issues/2024/06/Picture-This-The-Evolving-IMF?utm_medium=email&amp;utm_source=govdelivery">Atish Rex Ghosh and Andrew Stanley chart</a>&nbsp;how IMF lending, in particular, has evolved rapidly over the past 30 years. And historian&nbsp;<a href="https://www.imf.org/en/Publications/fandd/issues/2024/06/Moving-To-Complexity-Harold-James?utm_medium=email&amp;utm_source=govdelivery">Harold James</a>&nbsp;draws lessons from the past for global financial risk management.



As we move forward, one thing remains clear. “We cannot have a better world without international cooperation,” notes Georgieva. Taking inspiration from John Maynard Keynes, one of the IMF’s founding fathers, she concludes: “Keynes would encourage us to go even further as a global ‘transmission line’ for sound economic policies, financial resources, knowledge—and as the ultimate platform for global economic cooperation.”



We also mark the&nbsp;<a href="https://www.imf.org/en/Publications/fandd/issues/2024/06/FandD-at-60-the-life-and-times-of-Finance-Development-Anna-Postelnyak?utm_medium=email&amp;utm_source=govdelivery">60th anniversary</a>&nbsp;of this quarterly magazine,&nbsp;<a href="https://www.imf.org/en/Publications/fandd?utm_medium=email&amp;utm_source=govdelivery">Finance &amp; Development</a>.&nbsp;Just as the Bretton Woods institutions and the global economy have adapted, so too has F&amp;D. Today we are a platform on which thought leaders in many fields and from many countries explain and debate issues central to the global economy.



I want to express my gratitude to all our readers and contributors as we look forward to another 60 years of fresh thinking and inspiring debate.

hero-editors-letter-lighter-c-Daniel-Lievano

As IMF Turns 80, Mounting Global Challenges Mean World Must Work Together

<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>



LUSAKA, June 4 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund (IMF) said on Tuesday that Zambia&#8217;s government had asked for its $1.3 billion loan programme to be increased to $1.7 billion to help it respond to a severe drought.



The IMF also said in a statement that it had reached a staff-level agreement on the third review of the southern African country&#8217;s Extended Credit Facility.



Once the latest review is approved by IMF&#8217;s executive board at a meeting expected by the end of June, Zambia will have access to roughly $573 million, the fourth disbursement under the facility.



Zambia is one of a handful of African countries grappling with a drought induced by the El Niño weather phenomenon that has plunged parts of the region into hunger.



The copper-rich country is close to emerging from a debt-restructuring process beset by delays after more than three and a half years.



Zambia&#8217;s finance ministry said last week that more than 90% of holders of its $3 billion in outstanding international bonds had accepted a restructuring proposal.



Finance Minister Situmbeko Musokotwane said the staff-level agreement announced on Tuesday was &#8220;testament to Zambia&#8217;s determination to rebuild macroeconomic and debt sustainability&#8221; and its efforts to finalise restructuring talks within the parameters of its IMF programme.



(Reporting by Chris Mfula in Lusaka and Karin Strohecker in London; Writing by Bhargav Acharya; Editing by Alexander Winning and Ros Russell)

IMF logo is seen outside the headquarters building in Washington

Zambia asks for IMF loan to be increased to $1.7 billion

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1152" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-1536x864.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A collection of mixed denomination South African rand coins sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



PRETORIA, June 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s economy recorded a small contraction in the first quarter of 2024, statistics agency data showed on Tuesday, hurt by a slump in the mining and construction sectors.



Gross domestic product shrank 0.1% in quarter-on-quarter seasonally-adjusted terms. Economists polled by Reuters had expected growth of 0.1%.



On a year-on-year basis the economy grew 0.5%&nbsp;ZAGDPY=ECI&nbsp;compared to economists&#8217; prediction for 0.6% growth.



The South African economy has stagnated over the last decade with rolling power cuts, high unemployment, and port and rail inefficiencies dragging down growth.



Six out of 10 industries tracked by Statistics South Africa contracted in the first three months of the year, led by construction and mining which declined 3.1% and 2.3% respectively.



A bleak backdrop for consumer spending also made a dent in first-quarter growth, as final consumption expenditure contracted 0.3%.



The South African central bank sees GDP growth of 1.2% this year, saying late last month that it expected a better second-quarter performance.



But the outlook has been muddied by last week&#8217;s election in which the African National Congress&nbsp;lost its majority&nbsp;for the first time in 30 years and must now seek one or more coalition partners to govern the country.



&#8220;The unexpected election results mean that things have become even more uncertain, and all bets are off,&#8221; Jee-A van der Linde, a senior economist at Oxford Economics Africa, said in a research note. &#8220;A business-friendly coalition outcome would improve confidence and should unlock fresh investment that could give the economy legs to run from the second half of 2024.&#8221;



(Reporting by Kopano Gumbi; Additional reporting by Bhargav Acharya in Johannesburg; Editing by Alexander Winning and Christina Fincher)

South African Economy As Inflation Rate Rises For First Time In 2017

South African economy unexpectedly contracts in first quarter

<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/GettyImages-2019589029-820x547.jpg" alt="" class="wp-image-493806" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2019589029-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2019589029-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2019589029-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2019589029-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2019589029-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2019589029-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Duncan Pieterse, director general of the National Treasury, during a news conference ahead of the budget presentation in Cape Town, South Africa, on Wednesday, Feb. 21, 2024. South African Finance minister Enoch Godongwana will table his annual budget on Wednesday in the lead up to elections that opinion polls show will deprive the ruling African National Congress of a parliamentary majority for the first time in three decades. Photographer: Dwayne Senior/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, June 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s National Treasury intends to stick to a balanced fiscal stance under a coalition government, its director-general said on Tuesday, after the African National Congress&nbsp;(ANC)&nbsp;lost its majority in last week&#8217;s election.



&#8220;I think that our fiscal strategy is achievable, even in a coalition environment&#8230; because it&#8217;s quite balanced,&#8221; Duncan Pieterse told Reuters in an interview.



The ANC has up to two weeks to agree a coalition pact or another form of power-sharing arrangement with other political parties, after its share of the vote dropped below 50% for the first time in the post-apartheid era.



&#8220;A balanced macro-fiscal stance becomes more defensible in an uncertain political environment. And we intend to continue managing the fiscal stance along those lines,&#8221; Pieterse said.



The ANC&#8217;s potential partners diverge widely, from the free-marketeer Democratic Alliance (DA) to the more radical uMkhonto we Sizwe (MK) and the Economic Freedom Fighters (EFF), parties that advocate nationalising mines and banks and redistributing land.



South African markets rallied on Monday as investors bet on the ANC opting for a coalition including the DA rather than one involving MK or the EFF.



(Reporting by Kopano Gumbi; Writing by Alexander Winning; Editing by Joe Bavier)

South Africa’s Finance Minister Enoch Godongwana Presents Budget

South Africa’s fiscal stance to stay balanced under coalition, Treasury says

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



JOHANNESBURG, June 4 (Reuters)&nbsp;&#8211;&nbsp;The South African rand slipped in early trade on Tuesday before the release of first-quarter gross domestic product (GDP) data at 0930 GMT.



Economists polled by Reuters estimate that in the first three months of 2024 Africa&#8217;s most industrialised economy grew 0.1% in quarter-on-quarter terms&nbsp;ZAGDPN=ECI&nbsp;and 0.6% on a year-on-year basis&nbsp;ZAGDPY=ECI.



At 0615 GMT, the rand traded at 18.5525 against the dollar&nbsp;ZAR=D3, about 0.2% weaker than its closing level on Monday.



The rand, Johannesburg-listed stocks and government bonds gained on Monday as investors bet on the prospect of the African National Congress (ANC) striking a coalition deal with a market-friendly party after failing to get a majority in last week&#8217;s election.



Political parties have two weeks to work out a deal before the new parliament sits and chooses a president, still likely to be ANC leader Cyril Ramaphosa since the party remains the biggest force.



(Reporting by Alexander Winning; Editing by Andrew Heavens)

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Kenya’s central bank sticks to 5.7% growth forecast for this year despite floods

The super-thin battery that could power smart contact lenses

Botswana may raise De Beers stake as Anglo weighs spin-off

The typical CEO makes nearly 200 times more than their workers

South African rand edges higher with focus on ANC talks

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Kenya plans second Eurobond buyback in 2024, World Bank says

South African rand edges higher with focus on ANC coalition talks

What could a future with AI look like?

South Korea, African countries sign agreements on minerals, exports

Cross-border payments are still costing businesses in Africa too much

As IMF Turns 80, Mounting Global Challenges Mean World Must Work Together

Zambia asks for IMF loan to be increased to $1.7 billion

South African economy unexpectedly contracts in first quarter

South Africa’s fiscal stance to stay balanced under coalition, Treasury says

South African rand slips before Q1 GDP data

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Kenya’s central bank sticks to 5.7% growth forecast for this year despite floods

The super-thin battery that could power smart contact lenses

Botswana may raise De Beers stake as Anglo weighs spin-off

The typical CEO makes nearly 200 times more than their workers

South African rand edges higher with focus on ANC talks

South Africa’s financial system stable despite headwinds, central bank says

Why EV Tariffs Won’t Stop Chinese Cars

Kenya plans second Eurobond buyback in 2024, World Bank says

South African rand edges higher with focus on ANC coalition talks

What could a future with AI look like?

South Korea, African countries sign agreements on minerals, exports

Cross-border payments are still costing businesses in Africa too much

As IMF Turns 80, Mounting Global Challenges Mean World Must Work Together

Zambia asks for IMF loan to be increased to $1.7 billion

South African economy unexpectedly contracts in first quarter

South Africa’s fiscal stance to stay balanced under coalition, Treasury says

South African rand slips before Q1 GDP data

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