<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)

South Africa’s ANC party holds national policy conference

“Less coherent” South African govt could threaten ratings outlook – Scope

Will India’s Modi win the elections?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="524" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-820x524.jpg" alt="" class="wp-image-493524" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-1536x982.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/5XDOTSAZ7RPKBB5IN6WJR2HKXM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South Korean President Yoon Suk Yeol at a recent meeting in the Blue House in Seoul, South Korea, 27 May 2024. JEON HEON-KYUN/Pool via REUTERS/File Photo</figcaption></figure>



SEOUL, June 3 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s rich mineral resources and its potential as a vast export market are at the top of South Korea&#8217;s agenda as it hosts a summit with the leaders of 48 nations this week with plans for aid on industrial infrastructure and digital transformation.



Africa is a &#8220;crucial partner&#8221; for South Korea to further its industrial advances and &#8220;cooperation with Africa is not a choice but a necessity&#8221;, President Yoon Suk Yeol&#8217;s deputy national security adviser Kim Tae-hyo said.



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



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



&#8220;Africa&#8217;s strategic importance has never been greater,&#8221; Kim said.



South Korea is one of the world&#8217;s largest energy buyers and is home to leading semiconductor producers and the world&#8217;s fifth largest automaker making a push for electrification. Partnership with Africa with 30% of the world&#8217;s critical mineral including chrome, cobalt and manganese is crucial, Yoon&#8217;s office said.



Since Friday, Yoon has held meetings with the leaders of Sierra Leone, Tanzania and Ethiopia and is scheduled to meet separately the heads of other states including Zimbabwe, Togo, Rwanda and Mozambique on Monday.



Tanzania said it would borrow $2.5 billion over the next five years from South Korea through concessional loans, while Ethiopia signed a $1 billion financing deal over four years for infrastructure, science and technology, health and urban development.



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.



Agreements aimed at laying the groundwork for trade and investment are expected to be signed with several countries, which will help establish the administrative foundation for freer trade and advanced customs management, Kim said.



Aid on agricultural technology and plans for cooperation on climate change responses are also on the agenda.



(Reporting by Jack Kim; Additional reporting by Hyonhee Shin; Editing by Gerry Doyle)

FILE PHOTO: FILE PHOTO: South Korean President Yoon Suk Yeol

South Korea’s Yoon hosts Africa summit to tap minerals, vast export market

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FN6SHZMGJVMXJICANZS4G326BA-820x545.jpg" alt="" class="wp-image-493571" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FN6SHZMGJVMXJICANZS4G326BA-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FN6SHZMGJVMXJICANZS4G326BA-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FN6SHZMGJVMXJICANZS4G326BA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FN6SHZMGJVMXJICANZS4G326BA-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FN6SHZMGJVMXJICANZS4G326BA-1536x1021.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FN6SHZMGJVMXJICANZS4G326BA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view shows the Tetra Pak factory floor in Durban, South Africa, April 4, 2024. REUTERS/Rogan Ward/File Photo</figcaption></figure>



JOHANNESBURG, June 3 (Reuters)&nbsp;&#8211;&nbsp;South African manufacturing activity slumped in May, a Purchasing Managers&#8217; Index (PMI) survey showed on Monday, with respondents citing uncertainty linked to last week&#8217;s election and sluggish demand.



Wednesday&#8217;s vote saw the African National Congress lose its outright majority for the first time in 30 years, meaning it must now share power for the first time in the country&#8217;s post-apartheid history.



The seasonally-adjusted PMI for the factory sector dropped to 43.8 points in May from 54.0 in April, falling below the 50-point mark that separates expansion from contraction.



&#8220;Numerous respondents said that orders were put on hold as clients waited for the election results,&#8221; local bank Absa, which sponsors the survey, said in a statement.



&#8220;The PMI has been in contractionary territory for three out of five months this year, as the manufacturing sector seems volatile in an election year.&#8221;



(Reporting by Alexander Winning; Editing by Bate Felix)

A general view of the Tetra Pak factory floor in Durban

South African factory activity slumps in May on election uncertainty – Absa PMI

<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 3 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand was slightly stronger early on Monday, with analysts expecting coalition negotiations to be the main driver this week, after the African National Congress (ANC) failed to secure a majority for the first time in 30 years last week.



At 0810 GMT, the domestic currency traded at 18.7325 against the U.S. dollar&nbsp;ZAR=D3, up more than 0.2% from Friday.



The ANC got 40.2% of the vote on Wednesday, its worst election showing of the democratic era, which means that it will have to strike an agreement with one or more smaller parties to govern, an unprecedented prospect in the country&#8217;s post-apartheid history.



The prospect of an ANC tie-up with more radical parties like the far-left Economic Freedom Fighters (EFF) or former president Jacob Zuma&#8217;s uMkhonto we Sizwe (MK) has rattled investors, who would prefer a coalition that brings in the pro-business Democratic Alliance (DA).



&#8220;The rand has staged a recovery from its lows and appears to be unwinding some of the risk&#8230; priced in that the ANC would automatically default to forming an alliance with Zuma&#8217;s MK party or &#8230; (the) EFF,&#8221; ETM Analytics said in a note.



&#8220;Investors increasingly realise that the more responsible and productive alliance would likely be between the ANC and the DA.&#8221;



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, who would likely still be ANC leader Cyril Ramaphosa, since the ANC remains the biggest force.



On the Johannesburg Stock Exchange, the Top-40 index&nbsp;.JTOPI&nbsp;was up roughly 1.2% in early trade. The benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was firmer, while the yield fell 10 basis points to 10.6%.



(Reporting by Alexander Winning; Editing by Rashmi Aich)

Illustration photo of South African rand

South African rand edges higher; focus on coalition negotiations this week

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="543" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-820x543.jpg" alt="" class="wp-image-493557" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-820x543.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-768x509.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-1536x1018.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6KCGQMMDEVJIDD5EOT3T3XRWGQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Korean President Yoon Suk-yeol speaks during an inaugural dinner at a hotel in Seoul, South Korea, May 10, 2022. Jeon Heon-Kyun/Pool via REUTERS</figcaption></figure>



DAR ES SALAAM, June 3 (Reuters)&nbsp;&#8211;&nbsp;Tanzania and Ethiopia said they had signed accords with&nbsp;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.



South Korea is hosting at least 30 heads of state, including Tanzania and Ethiopia, at a South Korea-Africa summit this week.



Tanzania said it will borrow $2.5 billion over the next five years from South Korea through concessional loans.



The East African country also signed two accords on Korean use of its ocean resources and minerals used in clean energy technologies such as nickel, lithium and graphite, presidential spokesperson Zuhura Yunus said on Sunday.



Ethiopia, a fast-growing economy with 126 million people, signed a $1 billion financing deal over four years for infrastructure, science and technology, health and urban development, the state-affiliated Fana media outlet said.



Tanzanian President Samia Suluhu Hassan is also seeking cooperation in sectors including sustainable use of ocean resources, development of natural gas deposits and creative industries, and for Tanzania to supply labour to South Korea, according to Yunus.



Since Friday, South Korean President Yoon Suk Yeol has held meetings with the leaders of Sierra Leone, Tanzania and Ethiopia and was due to meet separately with heads of other states including Zimbabwe, Togo, Rwanda and Mozambique on Monday.



(Reporting by Nuzulack Dausen; editing by Hereward Holland, Mrigank Dhaniwala and Mark Heinrich)

FILE PHOTO: U.S. Vice President Kamala Harris meets with Tanzania’s President Samia Suluhu Hassan inside the Eisenhower Executive Office Building at the White House in Washington

South Korea agrees to lend billions to Tanzania, Ethiopia

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="350" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg" alt="" class="wp-image-400879" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1-300x172.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Stock market report. 3d illustration</figcaption></figure>



JOHANNESBURG, June 3 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Monday.



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



Manufacturing sector PMI survey



Treasury bill auction



Vehicle sales&nbsp;ZAVEHY=ECI&nbsp;data



Offshore trading in Johannesburg-listed stocks and bonds



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



South Africa&#8217;s rand slipped on Friday as fears the governing African National Congress (ANC) could form a coalition with radical parties following this week&#8217;s election roiled markets.&nbsp;.JZAR/



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



Asian share markets rallied on Monday, as investors looked forward to an interest rate cut in Europe and quite possibly Canada as the next step in global policy easing, though sticky inflation threatens to make the process a drawn out affair.&nbsp;MKTS/GLOB



<h2 class="wp-block-heading" id="h-wall-street">WALL STREET</h2>



The Dow and S&amp;P 500 ended higher on Friday and the Dow registered its biggest daily percentage gain since November 2023 as month-end repositioning drove a late sharp rally, with all three major indexes posting strong gains for May.&nbsp;.N



<h2 class="wp-block-heading" id="h-gold">GOLD</h2>



Gold prices were little changed on Monday as traders awaited more U.S. economic data this week, after recent data showed that inflation stabilised and lifted hopes for the Federal Reserve to cut interest rates later this year.&nbsp;GOL/



Some of the main stories out in the South African press:



BUSINESS DAY



&#8211; Welcome to a new coalition country: political horse-trading gets under way



&#8211; ANC considers government of national unity with two deputy presidents



&#8211; DA confirms it will have exploratory talks with ANC



(Compiled by Alexander Winning)

Stock market report. 3d illustration

South African Markets – Factors to watch on June 3

<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>



NAIROBI, June 3 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Monday.



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



Nigeria&#8217;s main labour unions plan to start an indefinite strike from Monday after failing to agree a new minimum wage with the government.



The United States and Kenya are due to hold their sixth in-person negotiating round under the Strategic Trade and Investment Partnership (STIP) in Mombasa, Kenya.



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



Asian share markets rallied on Monday as investors looked forward to a rate cut in Europe, and quite possibly Canada, as the next step in global policy easing, though sticky inflation threatens to make the process a drawn out affair.



[MKTS/GLOB]



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



Oil prices were little changed on Monday, as investors weighed a move by producer group OPEC+ to extend deep output cuts well into 2025.



[O/R]



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



South Africa&#8217;s rand slipped on Friday as fears the governing African National Congress (ANC) could form a coalition with radical parties following this week&#8217;s election roiled markets.



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



Kenya&#8217;s shilling gained ground on Friday, helped by low demand from importers and companies selling dollars to pay salaries, traders said.



<h2 class="wp-block-heading" id="h-sudan-famine">SUDAN FAMINE</h2>



The people of Sudan are at &#8220;imminent risk of famine&#8221;, United Nations agencies said on Friday, more than a year into a war between the army and the paramilitary Rapid Support Forces (RSF).



<h2 class="wp-block-heading" id="h-central-african-republic-security">CENTRAL AFRICAN REPUBLIC SECURITY</h2>



Prosecutors in Central African Republic say they have detained a European employee of a U.S.-based non-governmental organisation on suspicion of being a threat to state security and seeking to incite revolt against security forces.



<h2 class="wp-block-heading" id="h-congo-rates">CONGO RATES</h2>



Democratic Republic of Congo&#8217;s central bank decided at a meeting of its monetary policy committee on Friday to keep its policy rate unchanged at 25%, the bank said in a statement.



((Compiled by Nairobi Newsroom))

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African Markets – Factors to watch on June 4

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

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

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It is time for our politicians to put South Africa first

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

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“Less coherent” South African govt could threaten ratings outlook – Scope

Will India’s Modi win the elections?

South Korea’s Yoon hosts Africa summit to tap minerals, vast export market

South African factory activity slumps in May on election uncertainty – Absa PMI

South African rand edges higher; focus on coalition negotiations this week

South Korea agrees to lend billions to Tanzania, Ethiopia

South African Markets – Factors to watch on June 3

African Markets – Factors to watch on June 3

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African Markets – Factors to watch on June 4

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

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

Would you get a chip implanted in your brain?

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

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

Ubuntu And The Audacity To Believe In Business Dreams

“Less coherent” South African govt could threaten ratings outlook – Scope

Will India’s Modi win the elections?

South Korea’s Yoon hosts Africa summit to tap minerals, vast export market

South African factory activity slumps in May on election uncertainty – Absa PMI

South African rand edges higher; focus on coalition negotiations this week

South Korea agrees to lend billions to Tanzania, Ethiopia

South African Markets – Factors to watch on June 3

African Markets – Factors to watch on June 3

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