<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)

Illustration photo of South African rand

South African rand slips before Q1 GDP data

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



June 4 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Tuesday.



<h2 class="wp-block-heading" id="h-events">EVENTS:</h2>



Zambia&#8217;s bondholders will hold a final vote on Tuesday on a $3 billion restructuring deal.



Uganda&#8217;s central bank announces its latest benchmark lending rate decision.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Asian share markets were mildly weaker on Tuesday as global investors consider the prospect the U.S. economy&#8217;s &#8216;exceptionalism&#8217; is starting to unwind as manufacturing activity in the world&#8217;s largest economy further weakened.



[MKTS/GLOB]



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



Oil prices eased in Asian trade on Tuesday, extending losses from the previous session when prices fell to their lowest in four months, as investors worried about supply ticking up later in the year amid cautious demand outlooks from key consumer the U.S.



[O/R]



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS</h2>



South Africa&#8217;s rand, 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.



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS</h2>



Kenya&#8217;s shilling was steady against the dollar on Monday, supported by hard-currency inflows from tea exporters and remittances, traders said.



<h2 class="wp-block-heading" id="h-south-korea-africa">SOUTH KOREA AFRICA</h2>



South Korean President Yoon Suk Yeol said on Tuesday the country will step up cooperation with African nations to secure a stable supply of critical minerals and speed up negotiations to promote economic partnerships and trade.



<h2 class="wp-block-heading" id="h-rwanda-migration">RWANDA MIGRATION</h2>



Britain intends to begin deporting asylum seekers to Rwanda on July 24, a government lawyer said on Monday, although the hotly contested scheme is dependent on Prime Minister Rishi Sunak&#8217;s Conservative Party winning the upcoming election.



<h2 class="wp-block-heading" id="h-nigeria-strike">NIGERIA STRIKE</h2>



Nigeria&#8217;s main labour unions on Monday shut down the national grid and disrupted flights across the country as they began an indefinite strike over the government&#8217;s failure to agree a new minimum wage.



<h2 class="wp-block-heading" id="h-somalia-security">SOMALIA SECURITY</h2>



Somalia will expel thousands of Ethiopian troops stationed in the country to help with security by the end of the year unless Addis Ababa scraps a disputed port deal with the breakaway region of Somaliland, a senior Somali official said on Monday.



<h2 class="wp-block-heading" id="h-nigeria-central-bank">NIGERIA CENTRAL BANK</h2>



Nigeria&#8217;s central bank said on Monday it had revoked the banking licence of unlisted lender Heritage Bank Plc due to a breach of banking regulations.



<h2 class="wp-block-heading" id="h-south-korea-tanzania-ethiopia">SOUTH KOREA TANZANIA, ETHIOPIA</h2>



Tanzania and Ethiopia said they had signed accords with South Korea for loans of billions of dollars, part of broader deals that will give the Asian nation access to Africa&#8217;s crucial mineral resources and vast export market.



Compiled by Nairobi Newsroom

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on June 4

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-820x551.jpg" alt="" class="wp-image-493790" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-1536x1033.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/72HGRRWA4BKE7PLPMJLQATJOEY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Korean President Yoon Suk-yeol attends a press conference marking two years in office, at the Presidential Office in Seoul, South Korea, May 9, 2024. SONG KYUNG-SEOK/Pool via REUTERS</figcaption></figure>



SEOUL, June 4 (Reuters)&nbsp;&#8211;&nbsp;South Korean President Yoon Suk Yeol said on Tuesday the country will step up cooperation with African nations to secure a stable supply of critical minerals and speed up negotiations to promote economic partnerships and trade.



Hosting a first-ever summit with the leaders of 48 African countries, Yoon said South Korea will increase development aid for Africa to $10 billion over the next six years as it looks to tap the continent&#8217;s rich mineral resources and potential as a vast export market.



&#8220;We will seek sustainable ways to work together on issues directly related to future growth, such as stable supplies of key minerals and digital transformation,&#8221; Yoon said in his opening remarks.



He also pledged to offer $14 billion in export financing to promote trade and investment for South Korean companies in African countries.



South Korea is one of the world&#8217;s largest energy buyers and is home to leading semiconductor producers. It is also home to the world&#8217;s fifth-largest automaker Hyundai Motor Group, which is making a push for electrification.



Partnering with Africa, which has 30% of the world&#8217;s reserves of critical minerals including chrome, cobalt and manganese is crucial, Yoon&#8217;s office has said.



At least 30 heads of state are attending the summit, with delegations from 48 countries participating. Yoon and the chair of the African Union, Mauritania President Mohamed Ould Ghazouani, are due to issue a joint statement, Yoon&#8217;s office said.



Yoon proposed &#8220;shared growth&#8221; as a pillar of cooperation with the continent and stressed the need to establish a framework to promote trade and exchange, vowing to speed up talks for economic partnership agreements and trade and investment promotion frameworks.



By reaching out with offers to help with industrial infrastructure and digital transformation, South Korea is trying to tap into a vast and fast-growing market that is home to 1.4 billion people, the majority of whom are 25 or younger.



Park Jong-dae, a former South Korean ambassador to South Africa and Uganda, argued Western and Chinese models of development had failed African nations, and South Korea offered a valuable alternative path.



&#8220;The essence of Korean model of development cooperation is human development, and about management, rather than about provision of assistance per se,&#8221; he said.



&#8220;Korea has the experience and knowhow of development &#8230; while many African countries have immense possibilities for development based on yet to be explored, untapped resources and endowment, and dynamic young population,&#8221; he said.



On Wednesday, South Korean business leaders will host a business summit focused on investment, industrial development and food security.



Yoon will continue separate meetings with visiting leaders.



(Reporting by Jack Kim, Hyonhee Shin, Josh Smith and Hyunsu Yim; Editing by Jamie Freed)

South Korean President Yoon Suk-yeol attends a press conference marking two years in office, in Seoul

South Korea’s Yoon calls for greater cooperation with Africa on minerals, trade

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2155237975-820x546.jpg" alt="" class="wp-image-493635" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2155237975-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2155237975-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2155237975-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2155237975-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2155237975.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">MIDRAND, SOUTH AFRICA &#8211; JUNE 02: Displays during the announcement of the final result at the National Result Operation Centre (ROC) at Gallagher Estate on June 02, 2024 in Midrand, South Africa. South Africans voted in the country&#8217;s seventh democratic general elections to elect a new National Assembly as well as the provincial legislature in each of the nine provinces. (Photo by Sydney Seshibedi/Gallo Images via Getty Images)</figcaption></figure>



JOHANNESBURG, June 3 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand, 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.



The assets tumbled last week on worries of a tie-up with the more radical parties like the far-left Economic Freedom Fighters (EFF) or former president Jacob Zuma&#8217;s uMkhonto we Sizwe (MK), compared to a coalition that brings in the pro-business Democratic Alliance (DA).



Financial and political analysts said on Monday the chances of an ANC-DA pact were higher than one involving MK or EFF.



&#8220;The most likely result of South Africa&#8217;s May 29 election is a deal between the ruling African National Congress and the centrist Democratic Alliance, which would keep key economic policies unchanged and slightly improve the country&#8217;s fiscal and growth outlook,&#8221; BMI analysts said in a research note.



The ANC got 40.2% of the vote last week, with the DA coming second at 21.8%, MK third at 14.6% and the EFF fourth at 9.5%.



At 1351 GMT, the rand traded at 18.6225 against the U.S. dollar&nbsp;ZAR=D3, up around 0.8% from Friday&#8217;s close.



On the Johannesburg Stock Exchange, the Top-40 index&nbsp;.JTOPI&nbsp;was up about 1.4%. The yield on the benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;fell 10.5 basis points to 10.595%, reflecting a stronger price.



Johann Els, chief economist at investment group Old Mutual, said markets would view a coalition between the ANC, DA and the socially conservative Inkatha Freedom Party (IFP) favourably due to &#8220;the promise of more policy reform, stronger implementation, and a firm stance against corruption&#8221;.



The IFP got 3.9% of the vote in the election.



Els cautioned that markets were likely to remain volatile over the coming weeks and that a negative coalition outcome would spark a selloff.



Local media have reported that the DA could be open to entering a cooperation pact with the ANC, supporting it in key decisions in exchange for top jobs in parliament.



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.



(Editing by Alexander Winning and Sriraj Kalluvila)

Atmosphere At The National Results Operations Centre At Gallagher Estate On Day 04 In South Africa

South African assets gain on rising hopes of market-friendly coalition

Would you get a chip implanted in your brain?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="602" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/d2395096-83de-5eaa-f46e-9146c37f3330-820x602.jpeg" alt="" class="wp-image-493622" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/d2395096-83de-5eaa-f46e-9146c37f3330-820x602.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/d2395096-83de-5eaa-f46e-9146c37f3330-300x220.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/d2395096-83de-5eaa-f46e-9146c37f3330-123x90.jpeg 123w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/d2395096-83de-5eaa-f46e-9146c37f3330-768x564.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/d2395096-83de-5eaa-f46e-9146c37f3330-1536x1127.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/d2395096-83de-5eaa-f46e-9146c37f3330.jpeg 1677w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



At this critical junction for our democracy, it is vital that our politicians put the country first. It is time for the women and men of integrity who wish to guide this country on the path to growth and prosperity stand up and provide leadership. We need a stable government that will continue the vital work that has already been done to put our economy on the right track to create jobs and tax revenue. We cannot afford any disruption to this momentum.



The results will be a shock to many politicians, but when it comes to what we as citizens need, nothing changes. We need jobs, we need the economy to grow, and we need to generate revenue that can be taxed.



To have that, we need a stable and reliable government, committed to the rule of law and economic reform. As the parties that are sending members to parliament seek a workable plan, they must be clear about what “workable” means. It must be capable of enduring – we do not need a spectacle of votes of no confidence and repeat elections that we see in some countries where coalitions are the norm. The deals struck now must be capable of going the distance for a full five-year term.



Critically, though, the deals struck now must underpin policy continuity – they must enable the government to stick to the fiscal prudence that we have managed to return to governance over the last few years, and they must maintain the reform momentum needed to get the economy growing. Key interventions like Operation Vulindlela must be embraced and strengthened. The next government must continue the hard work of rebuilding institutions, particularly the criminal justice system. As a country, we must continue to restore our international standing, escape the FATF grey list and improve the national balance sheet so we can one day regain an investment grade credit rating. These objectives must be clear for the next government if it is going to deliver for South Africans.



I am confident that many parties share these objectives, but I know also that some do not. We must be wary of populism. The majority of South Africans voted for parties that are committed to clean governance, retaining the integrity of the constitution and the rule of law, and continuing to protect and safeguard the independence of our democratic institutions, including the judiciary and the Reserve Bank. The business community and global investors are aligned with this majority.



I know that many in our country suffer in conditions they should never have to endure. For over five years citizens have been getting poorer on average as the economy has grown slower than the population. Unemployment has continued to grow. This is a distressing position to be in 30 years after democracy, especially when at the halfway point we had been growing at 5%, unemployment was under 20% and it felt like we were making progress. There are lots of reasons we lost that momentum, among them that our institutions and governance were systematically undermined. We have for the last few years begun to rebuild our institutions and enact reforms that will help facilitate increased investment and private participation. This takes time to result in improved economic performance – business confidence must be rebuilt and investors have to actually make the investment and build the capacity to take advantage of an improved environment. I know that we are at the beginning of that recovery, with electricity stability returning and a proactive plan to improve logistics and other network industries. Populism would risk once again destroying this momentum before it has been able to grow and deliver.



We need instead a recommitment to reforms and evidence-based policy making that does the hard work of getting institutions to work effectively. We need to continue the professionalisation and reskilling of the public sector, enabling improved frontline delivery from the most rural districts to the biggest metros. We need effective policy making from the top, with economic planning closely developed alongside fiscal policy to maximise economic outcomes. We need investment in infrastructure to improve the capacity of our economy.



The negotiations from now on must put these objectives front and centre. That is what putting South Africa first means. This is what South Africans deserve. We do not want the spectacle of parties putting their narrow ambitions first, even less so individual personalities doing so. We certainly do not need a government that will reverse the progress made. I hope that we can quickly find a resolution and get to work in building the country that we all deserve.

d2395096-83de-5eaa-f46e-9146c37f3330

It is time for our politicians to put South Africa first

How Spaving Is Hurting Americans

Inflation is slowing—Here’s why prices still aren’t going down

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-820x615.jpg" alt="" class="wp-image-493619" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A member of the Nigeria Labour Congress dances in front of the domestic airport which has been shut down as Nigeria&#8217;s main labour unions called for an indefinite strike from Monday after failing to agree to a new minimum wage with the government, in Lagos, Nigeria. June 3, 2024.REUTERS/Seun Sanni</figcaption></figure>



LAGOS/ABUJA, June 3 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s main labour unions on Monday shut down the national grid and disrupted airline operations across the country as they began an indefinite strike over the government&#8217;s failure to agree a new minimum wage.



This strike is the fourth embarked upon by the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), two of the country&#8217;s biggest unions, since President Bola Tinubu took office last year.



The Transmission Company of Nigeria (TCN) said union members drove away operators at the country&#8217;s power control rooms and shut down at least six substations, which eventually shut the national grid at 02:19 am (0119 GMT).



Nigerian airline Ibom Air said it was suspending flights until further notice due to the strike, while another, United Nigeria, said airports across the country have been shut down and that striking workers had permitted none of its flights to operate.



Electricity and aviation unions said in a statement on Monday they had directed their workers to withdraw their services in compliance with the indefinite strike.



Since taking office Tinubu has embarked on Nigeria&#8217;s boldest reforms, which has fuelled a rise in inflation to an almost 30-year high and worsened a cost-of-living crisis in Africa&#8217;s most populous nation.



He has been under pressure from unions to offer relief to households and small businesses after scrapping subsidies on petrol, which kept fuel cheap but cost the government $10 billion last year.



Unions declared an indefinite strike on Friday after talks for a new minimum wage meant to cushion the impact of reforms collapsed. They said the strike would last until a new minimum wage was in place.



The TCN said it was making effort to recover and stabilize the national grid, but unions were obstructing grid recovery nationwide.



Unions have also demanded a reversal of an electricity tariff hike effected last month for better-off consumers who use the most power, as the government tries to wean the economy off subsidies.



On Thursday, Nigeria&#8217;s privatisation body said the country had secured a World Bank loan of $500 million for its electricity sector.



(Writing by Chijioke Ohuocha; Editing by David Goodman and Jan Harvey)

Nigerian unions shut down power grid, disrupt airlines with strike over minimum wage

<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/African-Bank-Day-4-Edna3523-2-820x547.jpg" alt="" class="wp-image-493616" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/African-Bank-Day-4-Edna3523-2-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/African-Bank-Day-4-Edna3523-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/African-Bank-Day-4-Edna3523-2-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/African-Bank-Day-4-Edna3523-2-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/African-Bank-Day-4-Edna3523-2-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/African-Bank-Day-4-Edna3523-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Edna Montse, Group Chief Transformation and Sustainability Officer at African Bank.</figcaption></figure>



The African Union’s Agenda 2063, titled The Africa We Want, speaks to inclusive and sustainable development in the drive for collective prosperity. Sadly, 24 years into our new millennium, the clarion call of women’s empowerment, diversity and inclusion, and transformation, still appears to have a novel ring to it.



How can this be on a continent where over 50% of the population is female? Over 40% of households in South Africa are female-led, yet women, and black women in particular, are unemployed at rates exceeding an already alarming national average. &nbsp;



“It is evident that lasting tangible change requires a commitment to transformation that transcends tick-box publicity stunts,” says Edna Montse, Group Chief Transformation and Sustainability Officer at African Bank.



“The empowerment of women not only contributes to a more just society, but creates opportunities for growth that everyone will benefit from.”



For African Bank, the concept of empowerment is anchored in ubuntu, the belief that our identity, humanity, and ambitions are interconnected.



“Ubuntu is a golden thread woven throughout the rich tapestry of the African Bank story,” says Montse.



“Our bank was established to give all South Africans access to financial services at a time when this right was reserved for a select few. Our founders fervently believed that a level economic playing field would open the door to prosperity. It is an ethos that illuminates the road ahead on our strategic journey. We are determined to play a positive role in the future of our society, and advancing the cause of women is central to that.”



An important facet of that cause is empowering women with the confidence and skills to become successful entrepreneurs. As part of their strategic drive to build a bank for the people, by the people, serving the people, African Bank has created a number of initiatives in which female business owners can tap into networks of experience, contacts, and support.



These include an Enterprise and Supplier Development Capacity Building program, which is a 12-month course in the finer aspects of business growth, their annual Enterprise and Supplier Development Summit, a Women Enterprise Development Programme, and the African Bank Women in Conversation programs held at various locations across the country.



It is a cause that is dear to Montse’s heart. Born into a family of women entrepreneurs, she witnessed firsthand the delicate balancing act these women had to perform to maintain their businesses and their households.



They faced significant challenges in growing their business, hamstrung by a lack of financial education and the fear that one false move could result in poverty.



Through their entrepreneurship and empowerment initiatives, African Bank hopes to instill in female entrepreneurs the audacity to believe that their business dreams are possible.



&nbsp;“We believe that our diversity is our strength and inclusivity remains paramount to creating positive social change,” says Montse.



“Our initiatives have allowed us to engage with women from all walks of life on issues that are close to their hearts, including financial wellness. The large turnouts we have witnessed at these initiatives prove that the entrepreneurial spirt that moved our founders to create African Bank is still very much alive and well in townships and disadvantaged communities across South Africa.” Monste adds, “We see ourselves as steward leaders of a vision so much greater than ourselves. We therefore must play an active role in giving agency to those relegated to the sidelines of the economic playing field, and hope to those with the audacity to believe in their dreams.”

African-Bank-Day-4-Edna3523-2

Ubuntu And The Audacity To Believe In Business Dreams

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="526" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IPJIO6EXK5L4TF6EMEG6ESDRDA-1-820x526.jpg" alt="" class="wp-image-493604" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IPJIO6EXK5L4TF6EMEG6ESDRDA-1-820x526.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IPJIO6EXK5L4TF6EMEG6ESDRDA-1-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IPJIO6EXK5L4TF6EMEG6ESDRDA-1-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IPJIO6EXK5L4TF6EMEG6ESDRDA-1-768x492.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IPJIO6EXK5L4TF6EMEG6ESDRDA-1-1536x985.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IPJIO6EXK5L4TF6EMEG6ESDRDA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A delegate looks on as South Africa&#8217;s governing African National Congress (ANC) holds a national policy conference at the Nasrec Expo Centre in Johannesburg, South Africa.
REUTERS/Siphiwe Sibeko</figcaption></figure>



LONDON, June 3 (Reuters) &#8211; A &#8220;less coherent&#8221; South African government after elections that cost the ruling African National Congress its majority for the first time since the end of Apartheid could threaten the country&#8217;s credit rating outlook, rating agency Scope said on Monday.



The ANC won just over 40% of last week&#8217;s vote, its worst showing since it took power 30 years ago. The government of Cyril Ramaphosa will now have to share power, likely with a major political rival.



&#8220;A less coherent government and specifically any further impairment of economic and/or fiscal challenges might place at risk the stable outlook assigned to the ratings,&#8221; Scope said in a report.



Scope added that regardless of the final government formed, decision making and governance in South Africa are likely to get more complicated.



Scope is next scheduled to review South Africa&#8217;s credit ratings by Sept.&nbsp;13. It has currently assigned a BB rating to South Africa, with a stable outlook.



The next government faces a slate of unenviable challenges, from crime, corruption and unemployment to record power shortages.



The focus is now on which party forms a coalition with the ANC; investors are worried about the ramifications of an alliance with the far-left Economic Freedom Fighters (EFF),or the uMkhonto we Sizwe (MK), while most would prefer the white-led, pro-business Democratic Alliance (DA).



Separately, Moody&#8217;s said a coalition government could complicate the execution of fiscal, economic and social policies that would help address the country&#8217;s structural credit weaknesses.



(Reporting By Libby George; Editing by Amanda Cooper and Hugh Lawson)

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