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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/S5LZY64NRJN3PBETOPLEHJD2FY-1-820x540.jpg" alt="" class="wp-image-502375" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/S5LZY64NRJN3PBETOPLEHJD2FY-1-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/S5LZY64NRJN3PBETOPLEHJD2FY-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/S5LZY64NRJN3PBETOPLEHJD2FY-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/S5LZY64NRJN3PBETOPLEHJD2FY-1-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/S5LZY64NRJN3PBETOPLEHJD2FY-1-1536x1011.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/S5LZY64NRJN3PBETOPLEHJD2FY-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South Africa&#8217;s President, Cyril Ramaphosa, speaks during the launch of the new Sandvik Khomanani manufacturing site at Khomanani in Kempton Park, Johannesburg, South Africa, September 9, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, June 30 (Reuters) &#8211; South African President Cyril Ramaphosa appointed former opposition leader John Steenhuisen as minister of agriculture on Sunday, bringing the Democratic Alliance and other parties into his new coalition cabinet.



Ramaphosa&#8217;s African National Congress was forced to join forces with rival parties to stay in power after losing its majority for the first time in three decades in a May 29 election.



The announcement of the new cabinet of the government of national unity followed weeks of protracted and at times acrimonious negotiations.



Ramaphosa retained the ANC&#8217;s Enoch Godongwana as finance minister while Ronald Lamola was appointed minister of international relations and cooperation, replacing Naledi Pandor.



Gwede Mantashe stayed on as mineral and petroleum resources minister but the president removed energy from his portfolio. The combination of mineral resources had been seen by many as creating a prejudice in favour of coal as a source of power generation.



Energy will now fall within the portfolio of Electricity Minister Kgosientsho Ramokgopa.



&#8220;These men and women we have appointed to the executive &#8230; reflect the diversity of our nation,&#8221; Ramaphosa said. &#8220;In the spirit of partnership and collaboration, the incoming government will work together.&#8221;



Wrangling over who gets what cabinet seat was the last hurdle to setting up a government, which now faces the task of reviving a moribund economy, fixing crumbling roads and power stations and creating jobs for the third of South Africans out of work.



&#8220;We look forward to being part of a new era in South Africa’s democratic journey, and to bringing real and tangible change to the millions of citizens who voted for it,&#8221; Steenhuisen said in a statement following the announcement.



Some minor parties also saw their leaders receive cabinet posts.



<h2 class="wp-block-heading" id="h-anc-took-hit-at-polls">ANC TOOK HIT AT POLLS</h2>



For decades the ANC had traded on its legacy of ending apartheid 30 years ago, when Nelson Mandela came to power and successfully reconciled a country deeply divided along racial, ethnic and class lines.



But voters became angered by the ANC&#8217;s poor record on delivering on basic services including water, schools and electricity.



&#8220;It is a major shake-up with very few of the old faces still in there, which is a good thing,&#8221; said Melanie Verwoerd, political analyst and former South African diplomat. &#8220;I think in general it&#8217;s a very positive step and of course very positive that they could actually get this done.&#8221;



Whether the current loose coalition of former enemies can improve on the ANC&#8217;s record&nbsp;may depend on the extent to which they can put aside their ideological differences, analysts have said. There are several potential hurdles to policymaking.



The DA wants to scrap some of the ANC&#8217;s Black empowerment programmes, saying that they have mostly made a politically connected business elite fabulously wealthy while much of the Black majority stays poor.



It opposes the ANC&#8217;s desire to expropriate land &#8211; most of which is in white hands as a legacy of conquest by colonists and subsequent entrenched white minority rule &#8211; without compensation and give it to Black farmers.



The DA also seeks to phrase out South Africa&#8217;s minimum wage, currently sitting at 27.58 rand ($1.52) a hour, arguing it makes the workforce uncompetitive.



($1 = 18.1850 rand)



(Additional reporting by Wendell Roelf in Cape Town and Bhargav Acharya, Kopano Gumbi and Alexander Winning in Johannesburg; Editing by Joe Bavier and Mark Porter)

FILE PHOTO: South African President Cyril Ramaphosa attends the launch of the new Sandvik Khomanani manufacturing site

South Africa’s President Ramaphosa announces cabinet that includes ex-opposition leader

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-820x547.jpg" alt="" class="wp-image-486231" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">DURBAN, SOUTH AFRICA &#8211; FEBRUARI 24: South African President and African National Congress (ANC) President Cyril Ramaphosa seated next to National Chairperson (and minister of mineral resources) Gwede Mantashe (c) and Fikile Mabula (l), the secretary general of the ANC and deputy President Paul Mashatile after speaking to supporters at the ANC Election Manifesto at Moses Mabhida Stadium on February 24, 2024, in Durban, South Africa. About 70,000 people gathered to hear ANC President Cyril Ramaphosa state the promises in advance of the election which will be held on May 29, 2024. Mr. Ramapahosa promised to step up his governments efforts to create jobs, welfare grants and a national health care program. ANC has seen decreased support in recent polls and especially KwaZulu-Natal province will be a tightly contested province during 2024 elections, Thirty years after the first democratic elections on April 27, 1994. (Photo by Per-Anders Pettersson/Getty Images)</figcaption></figure>



JOHANNESBURG, May 31 (Reuters) &#8211; For the first time in South Africa&#8217;s democratic era, the African National Congress (ANC) will have to seek a coalition partner to govern with after it was on course to fall well short of a majority in the national election.



Here are scenarios of what could happen next in South Africa and which parties the ANC might partner with:



<h2 class="wp-block-heading" id="h-will-ramaphosa-get-ousted">WILL RAMAPHOSA GET OUSTED?</h2>



With results in from over 60% of polling stations, the ANC had just under 42% of votes, by far its worst result since democratic elections began after the end of apartheid in 1994 and leaving it short of a majority in parliament.



Some political analysts say this could lead to party leader and South Africa&#8217;s President Cyril Ramaphosa having to step down.



Over the past four electoral cycles the ANC&#8217;s share of the vote gradually dropped, but never by more than five percentage points from one election to the next.



If the vote share of 42% or below is confirmed, the party could seek to oust Ramaphosa as its leader and nominate another high-profile politician such as Deputy President Paul Mashatile or Gwede Mantashe, currently in charge of the mines and energy ministry, to the National Assembly to elect as South African president.



A more probable scenario could see Ramaphosa carry on for a while to broker a coalition deal with another party in a bid to secure a parliamentary majority and then hand over to a successor, analysts say. Asked on Friday whether Ramaphosa would have to resign after the dismal election result, ANC First Deputy Secretary-General Nomvula Mokonyane said: &#8220;Nobody is going to resign.&#8221;



In any case, the ANC needs to move quickly as the constitution says the new National Assembly must convene within 14 days of the election results being declared, which is due to happen on Sunday, to elect a new president.



<h2 class="wp-block-heading" id="h-who-are-the-potential-coalition-partners">WHO ARE THE POTENTIAL COALITION PARTNERS?</h2>



Depending on the final numbers, the&nbsp;ANC&nbsp;may have no choice but to seek support from one of its larger rivals:&nbsp;the pro-business, white-led Democratic Alliance (DA), uMkhonto we Sizwe (MK), led by former president Jacob Zuma,&nbsp;or the Marxist Economic Freedom Fighters (EFF).



The price of a deal with either of those would likely be significant policy concessions by the ANC, as well as the offer of some senior government positions for their partner.



Analysts say it is difficult to envisage a stable arrangement under this scenario, and South Africa could be facing a period of unprecedented government volatility.



Investors and the business community would prefer a deal with the DA,&nbsp;which has received 23% of votes counted so far,&nbsp;and is seen as more market-friendly.



However, many analysts think the ideological divide between the ANC and the leading opposition party is so wide as to make such a deal difficult, if not impossible.



Led by Julius Malema, a former leader of the ANC&#8217;s youth wing, the EFF may be a more natural fit for the ANC, but relations are tense between Malema and some ANC factions.



The EFF,&nbsp;on 9.5% of the vote,&nbsp;said in April it would partner with the ANC if it got the powerful post of finance minister. The ANC, which has not disclosed its thinking on any non-majority scenario, would be unlikely to agree to this unless it were hugely weakened.



Steven Friedman, an academic affiliated with the University of Johannesburg and Rhodes University, said it was hard to imagine the ANC and the EFF governing together for five years.



He cited their inability last year to agree on a constitutional change on land reform even though their positions on the issue are closely aligned.



A deal with the MK, currently emerging as the third biggest partywith around 12%, would also be difficult to digest for the ANC, which struggled to clean its reputation after the corruption scandals of the Zuma era.



&#8220;What we do know now is that the ANC is in a trilemma,&#8221; said Sizwe Mpofu-Walsh, a political analyst at the University of the Witwatersrand in Johannesburg.



&#8220;The ANC will have to decide whether it goes with its historical partners, the EFF and MK, or whether it takes an unprecedented step of reaching across the aisle of South African politics in a grand coalition with the DA.



&#8220;Anyone of those coalitions is politically unprecedented,&#8221; he said. &#8220;It remains to be seen to what extent that represents a true policy shift in South Africa.&#8221;



LESS LIKELY SCENARIOS



If the ANC gets a last-minute boost to secure over 45% of the vote, which looks out of reach at this stage, it could try to make a deal with small- or medium-sized parties to form a government.



Analysts have said the socially conservative Inkatha Freedom Party (IFP), which is strong in KwaZulu-Natal province and is polling at about 3% nationally, could be the ANC&#8217;s first choice, but its support would be insufficient to secure a majority.



(Additional reporting by Nellie Peyton; Editing by Silvia Aloisi and Toby Chopra)

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107422449-1717142477047-gettyimages-2154698181-ED_506321-820x462.jpeg" alt="" class="wp-image-492772" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107422449-1717142477047-gettyimages-2154698181-ED_506321-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107422449-1717142477047-gettyimages-2154698181-ED_506321-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107422449-1717142477047-gettyimages-2154698181-ED_506321-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107422449-1717142477047-gettyimages-2154698181-ED_506321-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107422449-1717142477047-gettyimages-2154698181-ED_506321.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Voters during the South Africa general elections on May 29, 2024 in Johannesburg, South Africa.  Gallo Images | Gallo Images | Getty Images</figcaption></figure>



Live updates of partial results from South Africa’s parliamentary election reappeared on the electoral commission’s website, following a glitch of at least two hours.



The prints are closely watched amid early indications that the country’s governing African National Congress, the liberation party of Nelson Mandela, could lose its parliamentary majority for the first time in the 30 years since it assumed governance.



The electoral commission’s portal was briefly blank at 06:08 a.m. London time, but once more displayed results by 08:23 a.m. in London, according to CNBC monitoring.



The commission did not immediately respond to a CNBC request for comment on the interruption in updates. Reuters reported that the disruption was a result of a technical glitch that technicians at the results center in Midrand, north of Johannesburg, were attending to.



Once the portal returned online, its data showed support for the ANC at 41.86% off 55.63% of the ballots, with the Democratic Alliance (DA) at 23.67%, and the Marxist Economic Freedom Fighters (EFF) securing 19.98%.



A final result near the current preliminary 42% would be a steep tumble for the ANC, which last earned 57.5% of support in the 2019 election. It would also propel incumbent President Cyril Ramaphosa to begin negotiations for a coalition government, stoking political uncertainty that could bleed into the country’s economic prospects.

107422449-1717142477047-gettyimages-2154698181-ED_506321

South Africa’s election portal resumes showing partial results after brief glitch

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QRJNG76WGNK25BYY4MRKJYVD3U-820x545.jpg" alt="" class="wp-image-492769" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QRJNG76WGNK25BYY4MRKJYVD3U-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QRJNG76WGNK25BYY4MRKJYVD3U-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QRJNG76WGNK25BYY4MRKJYVD3U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QRJNG76WGNK25BYY4MRKJYVD3U-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QRJNG76WGNK25BYY4MRKJYVD3U-1536x1021.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QRJNG76WGNK25BYY4MRKJYVD3U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People wait to get vaccinated against the coronavirus disease (COVID-19) amid the outbreak, in Bangkok, Thailand, January 10, 2022. REUTERS/Soe Zeya Tun/ File Photo</figcaption></figure>



LONDON, May 31 (Reuters)&nbsp;&#8211;&nbsp;The world is unprepared for another health crisis like COVID-19, a leading global health expert has warned, as countries make a last push to agree a way forward for a pandemic treaty amid fears the political climate for agreement could sour.



World Health Organization member states gathered in Geneva on Friday to work out how to continue negotiations about an accord after missing this month’s deadline.



“We only hope that&#8230; (in the) next few months, we don&#8217;t have another pandemic that finds us in a world which is still unprepared for a major crisis,” Muhammad Ali Pate, Nigeria’s health minister and a board member of the Global Fund to Fight Aids, Tuberculosis and Malaria, told Reuters.



A major sticking point in the treaty has been provisions for low and middle-income countries to have access to 20% of tests, treatments and vaccines developed to fight the pandemic, either at no-profit costs or donated.



Ali Pate said the figure was reasonable to avoid the scramble for life-saving products that saw African countries last-in-line during COVID.



While talks on the treaty are likely to continue for several months or even years, a parallel process to update an existing set of rules that govern international disease outbreaks are closer to agreement, sources said, and could be signed off before the end of the WHO’s annual meeting on Saturday.



Other negotiators and observers said there was a sense of urgency in the treaty talks, not least because of concerns that elections in a number of key countries this year could bring in right-leaning governments who fear the treaty could threaten their sovereignty, which the WHO denies and a clause in the document guards against.



“This needs to be done now or else things are only going to get worse with things moving to the right,” said one Western diplomat.



(Reporting by Emma Farge and Jennifer Rigby; Editing by Nick Macfie)

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/USM5T4CHF5M6DBLRRV6VD433C4-820x547.jpg" alt="" class="wp-image-492733" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/USM5T4CHF5M6DBLRRV6VD433C4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/USM5T4CHF5M6DBLRRV6VD433C4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/USM5T4CHF5M6DBLRRV6VD433C4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/USM5T4CHF5M6DBLRRV6VD433C4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/USM5T4CHF5M6DBLRRV6VD433C4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/USM5T4CHF5M6DBLRRV6VD433C4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Children play near a poster for the uMkhonto weSizwe party in the township Botleng in Delmas, South Africa May 30, 2024. REUTERS/Ihsaan Haffejee</figcaption></figure>



BOTLENG, South Africa, May 31 (Reuters) &#8211; With South Africa&#8217;s ruling party on track to get about 42% of the vote in the national election, the anger in its heartland coal-mining belt gives a hint as to why it faces its worst result ever &#8211; and the prospect of sharing power with its rivals.



In the township of Botleng &#8211; once a source of cheap farm labour for the country&#8217;s hated white minority ex-rulers &#8211; roads are riddled with potholes, power cuts frequent and unemployed youths smoke cheap heroin to ease boredom and despair.



Car wash owner Emmanuel Mthimunye, 34, says he had always cast his ballot for the African National Congress in the past. This time he wants to see something different.



&#8220;I don&#8217;t want to see unemployment, I don&#8217;t want to see those shacks,&#8221; he told Reuters, gesturing to some tin edifices set against yellowing grass littered with trash.



&#8220;I don&#8217;t want to see those potholes, I don&#8217;t want to see young guys smoking nyaope (heroin mixed with cannabis) &#8230; because there&#8217;s nothing else to do.&#8221;



For Mthimunye and others in Mpumalanga, the province where the town of Botleng is situated, the promises of a better life for the country&#8217;s Black majority after Nelson Mandela propelled the ANC to victory 30 years ago ring hollow. That may explain why the party&#8217;s share of the vote in the eastern province has tumbled to 53% currently from 72% in the previous poll in 2019.



One such promise was government-sponsored housing, for which Mthimunye applied in 2012 and is still waiting. He says he sought financial support for his business but failed &#8211; something he blames on a lack of connections with anyone in the party&#8217;s local office. He worries about not being able to afford his rent and ending up in a makeshift shack as well.



&#8220;Those guys (the ANC) fought for freedom but that freedom has slowly but surely been taken away from us,&#8221; he said. &#8220;We can&#8217;t do anything with no money.&#8221;



An ANC spokesperson declined to comment on the accusations of failing to deliver on promises or nepotism, and ANC leaders have said little about these widespread claims. In a church service in Cape Town earlier this month, President Cyril Ramaphosa admitted the ruling party had made &#8220;mistakes&#8221;.



&#8220;We have humbled ourselves and admitted where we have gone wrong. Our focus is on fixing those mistakes and working hard to renew the ANC,&#8221; he said.



<h2 class="wp-block-heading" id="h-you-get-no-help">&#8220;YOU GET NO HELP&#8221;</h2>



Mpumalanga has for decades attracted poor Black South Africans to jobs in coal mining or power stations, which keep the nation&#8217;s lights on. But its townships suffer major power shortages while a decline in the business as coal-fired power stations get retired or break down has left many out of work.



With&nbsp;nearly 55%&nbsp;of votes counted&nbsp;nationally, Electoral Commission data showed the biggest hit to the ANC&#8217;s majority comes from the&nbsp;new&nbsp;uMkhonto we Sizwe (MK) party set up by ex-president Jacob Zuma in December.



MK is the party Mthimunye voted for, and it&nbsp;has&nbsp;snatched&nbsp;11%&nbsp;of the national vote.



In Mpumalanga, the MK has&nbsp;18% &#8211; the main driver behind the ANC&#8217;s share falling to just under half, compared with 72% in the previous 2019 poll.&nbsp;The pro-business Democratic Alliance (DA) and far-left Economic Freedom Fighters (EFF)&nbsp;rose by 2 and 1 percentage points respectively to 12% and 13%.



A court barred Zuma from running as MK candidate because of his conviction for contempt of court in one of several corruption trials against him, but for supporters like Lenie Modise, 35, unemployed, &#8220;Jacob Zuma knows the mistakes he made and so he won&#8217;t do it anymore.&#8221;



Other defectors to the MK party, like Eugene Du Toit, 31 and also unemployed, just saw the appeal of a new party and didn&#8217;t associate it with Zuma, while 34-year-old Nomsa Masango, hopes any change will improve her chances of finding a job.



&#8220;I used to vote ANC,&#8221; she said, donning her green-and-black MK T-shirt. &#8220;I switched when I saw no change in my life.&#8221;



She begged her local ANC councilor to help her find work, but, she says, he didn&#8217;t help her because she wasn&#8217;t a friend or relative. &#8220;If you don&#8217;t know anyone, you get no help,&#8221; she said.



Across the province, the resentment runs deep.



&#8220;Why are we in Mpumalanga being load-shedded (having our power cut) when it&#8217;s us producing the electricity,&#8221; Julius Mohadi, 28, a teacher, said. He grew up in a family that campaigned for the ANC but now he votes EFF. &#8220;The ANC really forgot about us,&#8221; he said.



(Reporting by Tim Cocks, editing by Silvia Aloisi and Deepa Babington)

MK displaces ANC in Delmas, South Africa

In South Africa’s coal belt ANC heartland, voters defect en masse

<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, May 31 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Friday. 



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



*Kenya and Uganda&#8217;s statistics offices are due to release their respective consumer inflation data for May. *Democratic Republic of Congo&#8217;s central bank holds its first monetary policy committee meeting for the year. 



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



Asian stocks rose on Friday and were poised for the fourth month of gains, while the dollar drifted lower, keeping the yen steady as investors await inflation readings from Europe and the U.S. that will likely dictate the path of interest rates globally. 



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



Oil prices fell early on Friday as investors responded to comments from U.S. Fed officials who said it was too soon to start considering rate cuts, and following a surprise build in U.S. gasoline stocks that weighed on the market. 



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



South Africa&#8217;s currency, stocks and bonds fell on Thursday amid political uncertainty after election projections showed the African National Congress (ANC) was set to lose its parliamentary majority for the first time in 30 years. 



<h2 class="wp-block-heading" id="h-africa-currencies">AFRICA CURRENCIES </h2>



Kenya&#8217;s shilling and Zambia&#8217;s kwacha are expected to gain ground against the dollar and Ghana&#8217;s cedi will weaken, while Nigeria&#8217;s naira and Uganda&#8217;s shilling are forecast to hold steady in the next week to Thursday, traders said. 



<h2 class="wp-block-heading" id="h-nigeria-world-bank-loan">NIGERIA WORLD BANK LOAN </h2>



Nigeria has secured a $500 million World Bank loan for its electricity sector to boost power distribution, after last month&#8217;s hike in tariffs for top consumers in Africa&#8217;s most populous nation. 



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



Kenya&#8217;s shilling strengthened on Thursday, lifted by dollar inflows from tea exporters, traders said. 



<h2 class="wp-block-heading" id="h-kenya-world-bank-loan">KENYA WORLD BANK LOAN </h2>



The World Bank on Thursday approved the first of three budget support packages for Kenya worth $1.2 billion, to help the East African country address short-term fiscal pressures and accelerate green policies. 



<h2 class="wp-block-heading" id="h-west-africa-politics">WEST AFRICA POLITICS </h2>



Senegalese President Bassirou Diomaye Faye, on his first official visit to Mali on Thursday, said he raised the question of remaining in regional bloc ECOWAS with his Malian counterpart, who was &#8220;not totally inflexible&#8221; on the matter. 



<h2 class="wp-block-heading" id="h-ivory-coast-cocoa">IVORY COAST COCOA </h2>



Ivory Coast&#8217;s cocoa regulator has told exporters that a discount for the grading of beans from the mid-crop will not be offered for deferred contracts, according to a letter from the Coffee and Cocoa Council (CCC) dated May 24. 



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on May 31

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/444PLG6PDNKKFA6UKQOPJROONE-820x547.jpg" alt="" class="wp-image-492714" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/444PLG6PDNKKFA6UKQOPJROONE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/444PLG6PDNKKFA6UKQOPJROONE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/444PLG6PDNKKFA6UKQOPJROONE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/444PLG6PDNKKFA6UKQOPJROONE-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/444PLG6PDNKKFA6UKQOPJROONE-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/444PLG6PDNKKFA6UKQOPJROONE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The result board at the National Results Operation Centre of the Electoral Commission of South Africa (IEC), which serves as an operational hub where results of the national election are displayed, in Midrand, South Africa, May 30, 2024. REUTERS/Alet Pretorius</figcaption></figure>



MIDRAND, South Africa, May 31 (Reuters) &#8211; South African parties geared up for coalition talks on Friday as the governing African National Congress (ANC) looked set to fall well short of a majority for the first time in 30 years of democracy.



While the party of the late Nelson Mandela looked likely to remain the largest political force, voters appeared to have punished the former liberation movement for years of decline.



With results in from 57.3% of polling stations, the ANC had 41.9% of votes, a precipitous drop from the 57.5% it secured in the last national election in 2019.



The pro-business Democratic Alliance (DA) was in second place on 23.4%. uMkhonto we Sizwe (MK), a new party led by former president Jacob Zuma, was at 11.3% and eating into ANC support, particularly in KwaZulu-Natal, Zuma&#8217;s home province.



MK had overtaken the Marxist Economic Freedom Fighters (EFF), currently the third biggest party in parliament, which was sitting on 9.5%.



&#8220;I think it&#8217;s a very good day for South Africa. We said for the last 30 years the way to rescue South Africa was to break the ANC majority. We&#8217;ve done that,&#8221; DA leader John Steenhuisen told reporters at the results centre in Midrand, north of Johannesburg.



The ANC had won every previous national election since the historic 1994 vote that ended white minority rule, but over the last decade South Africans have watched the economy stagnate, unemployment and poverty climb and infrastructure crumble, leading to regular power outages.



Speculation was intense about which party or parties the ANC may approach to form a coalition and remain in government, or what other negotiations might be going on behind closed doors.



Asked if his party was in coalition talks, Steenhuisen said &#8220;no&#8221;.



&#8220;We&#8217;ve got to wait for the results to end before we can start with any major discussions but my first port of call is going to be with my Multi-Party Charter conference,&#8221; he said, referring to an alliance of opposition parties formed before the election.



The uncertainty impacted the government bond market, with prices of the country&#8217;s main internationally traded bonds down as much as 1.3 cents on the U.S. dollar. The falls were the third in a row and left the bonds at their lowest level in almost a month.&nbsp;US836205AR58=TEUS836205AZ74=TE



<h2 class="wp-block-heading" id="h-doomsday-coalition">&#8216;DOOMSDAY COALITION&#8217;</h2>



Projections by South Africa&#8217;s Council for Scientific and Industrial Research indicated the ANC would get 40.5% when full results are in.



The ruling party&#8217;s performance looked particularly dire in KwaZulu-Natal, where MK was on 44.1% to just 18.8% for the ANC, according to partial results as of 0830 GMT.



By law the election commission has seven days to release full provisional results, but election officials have said they are planning for a Sunday announcement.



The results page on the electoral commission&#8217;s website, which had been updating seamlessly since the start of the count, went blank for roughly two hours early on Friday due to a technical problem. The data reappeared shortly after 0700 GMT.



&#8220;The data in the data centre remains intact and the results have not been compromised &#8230; Result processing continues unaffected,&#8221; the commission said in a statement.



Political parties&#8217; share of the vote will determine the number of seats they get in the National Assembly, which then elects the next president.



That could still be the ANC&#8217;s leader, incumbent President Cyril Ramaphosa. However, an embarrassing showing at the polls risks fuelling a leadership challenge.



Investors and the business community have voiced concern over the prospect of the ANC entering a coalition with the EFF, which is calling for the seizure of white-owned farms and the nationalisation of mines and banks, or with Zuma&#8217;s MK which also talks about land confiscation.



Though the DA says it wants to oust the ruling party, Steenhuisen has not ruled out a partnership to block what he has called a &#8220;doomsday coalition&#8221; with the ANC bringing the EFF or MK into government.



(Additional reporting by Nqobile Dludla, Tannur Anders and Bate Felix; Writing by Alexander Winning and Estelle Shirbon; Editing by Stephen Coates and Emelia Sithole-Matarise)

National Results Operation Centre of the Electoral Commission of South Africa

South Africa heads for coalition as ANC set for big fall

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/5UHZBSDOAZMGXBEPEGYG4OCQHU-820x547.jpg" alt="" class="wp-image-492427" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/5UHZBSDOAZMGXBEPEGYG4OCQHU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/5UHZBSDOAZMGXBEPEGYG4OCQHU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/5UHZBSDOAZMGXBEPEGYG4OCQHU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/5UHZBSDOAZMGXBEPEGYG4OCQHU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/5UHZBSDOAZMGXBEPEGYG4OCQHU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/5UHZBSDOAZMGXBEPEGYG4OCQHU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Supporters of the African National Congress (ANC) wave party flags during their final rally ahead of the upcoming election at FNB stadium in Johannesburg, South Africa, May 25, 2024. REUTERS/Alaister Russell/File Photo</figcaption></figure>



MIDRAND, South Africa, May 30 (Reuters) &#8211; The African National Congress looked set on Thursday to lose the parliamentary majority it has held for 30 years, as partial election results suggested it would need a partner to stay in power &#8211; a first in South Africa&#8217;s post-apartheid history.



If the final results confirm the loss of its majority, the ANC will be forced to make a deal with one or more other parties to govern &#8211; a situation that could lead to political volatility in the coming weeks or months.



&#8220;The ANC might have to consider forming an alliance with one of its major rivals in order to maintain its hold on power,&#8221; said Andrew Bahlmann, a senior executive at M&amp;A advisory firm Deal Leaders International.



&#8220;The key area of uncertainty is the make-up of a future coalition.&#8221;



With results in from 20.4% of polling stations, the ANC&#8217;s share of the vote in Wednesday&#8217;s election stood at 43.4%, with the pro-business Democratic Alliance (DA) on 24.9%, data from the electoral commission showed on Thursday.



The Marxist Economic Freedom Fighters (EFF) party was on 8.8%, while uMkhonto we Sizwe (MK), a new party led by former president Jacob Zuma, was snapping at its heels on 8.1%, with support concentrated in Zuma&#8217;s home province of KwaZulu-Natal.



The ANC has won national elections held every five years since the landmark 1994&nbsp;vote, which marked the end of white minority rule and the ascent of Nelson Mandela as president.



But since those heady days the ANC&#8217;s support has declined because of discontent over high unemployment and poverty, rampant crime, frequent power blackouts and corruption.



While early results skew towards rural areas where the ANC is relatively strong, results from urban centres where it is weaker build up later.



Pollsters and two of the country&#8217;s three main broadcasters were predicting that the final results would confirm that the ANC &#8211; which won 57.5% of the vote in the previous election in 2019 &#8211; had&nbsp;lost its majority.



Under South Africa&#8217;s&nbsp;proportional voting system, parties&#8217; shares of the vote determine the number of seats they get in the National Assembly, which then elects&nbsp;the next president.



With the ANC still on course to be the largest party, that is likely to be its leader Cyril Ramaphosa, the incumbent.



However, a poor showing could make him vulnerable to a leadership challenge from within party ranks, whether in the immediate future or at some point during his term.



<h2 class="wp-block-heading" id="h-risk-of-gridlock">RISK OF GRIDLOCK</h2>



Which of the opposition parties the ANC may seek out as a potential coalition partner was the subject of intense speculation.



&#8220;(These results) give the ANC the option of partnering with the market-friendly DA, which markets would undoubtedly prefer, or one of the two populist parties that advocate for the nationalisation of mines and banks,&#8221; said Bahlmann, referring to the EFF and MK.



&#8220;The possibility of an unstable coalition is causing concern in financial markets, as such a coalition would likely demand policy changes that could discourage investment.&#8221;



The rand slipped more than 1% against the U.S. dollar while the wider equity index&nbsp;.JTOPI&nbsp;dropped more than 2%. The country&#8217;s international bonds also fell.



The ANC&nbsp;has&nbsp;some policy similarities&nbsp;with the EFF and MK, but both are led by former ANC figures who have fallen out with the ruling party&#8217;s leadership.



Talks with the DA&nbsp;could&nbsp;also&nbsp;prove&nbsp;challenging&nbsp;as the parties are far apart on policy and fiercely antagonistic.



Simon Harvey, head of foreign exchange analysis at Monex Europe, said the speed at which a coalition could be formed would be an indication of what was to come.



&#8220;If it is protracted, you may start to worry about a political gridlock going forward,&#8221; he said.



The ruling party issued a statement that gave little away.



&#8220;The ANC looks forward to a clear mandate from voters to continue the work of transforming South Africa,&#8221; it said.



Zuma&#8217;s MK, in contrast, adopted a triumphant tone, slamming what it called &#8220;Ramaphosa&#8217;s dismal regime&#8221; and setting out its own policy stall, which echoed some of the goals the ANC pursued during Zuma&#8217;s term as president.



&#8220;The MK party remains committed to honouring your trust and working tirelessly to ensure that the vision of free education, expropriation of land, job creation, poverty eradication, youth entrepreneurship and the ushering in of a new Constitution &#8230; becomes a reality for all South Africans,&#8221; it said.



Zuma was forced to quit as president in 2018 after a string of scandals and has since thrown his weight behind MK. The party, named after the ANC&#8217;s armed wing from the apartheid era, appeared to be costing both the ANC and the EFF votes.



By law, the electoral commission has seven days to declare full results, but in practice it is usually faster than that.



The new parliament must convene within 14 days of final results being declared and its first act must be to elect the nation&#8217;s president.



(Additional reporting by Kopano Gumbi, Tannur Anders, Alexander Winning, Nellie Peyton, Bate Felix, Sruthi Shankar and Karin Strohecker; Writing by Estelle ShirbonEditing by Gareth Jones, Toby Chopra and Emelia Sithole-Matarise)

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

ANC on course to lose majority in South Africa’s seismic election

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-820x547.jpg" alt="" class="wp-image-430849" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigerian President Bola Tinubu arrives for the closing session of the New Global Financial Pact Summit, Friday, June 23, 2023 in Paris, France. Lewis Joly/Pool via REUTERS/File Photo</figcaption></figure>



LAGOS, May 30 (Reuters)&nbsp;&#8211;&nbsp;Nigerian Josephine Akiga looks around her empty restaurant in Abuja, where a sole customer sits eating, longing for the days when the place was filled with people.



Business has been so tough since President Bola Tinubu took office a year ago that she sometimes lets customers pay what they have for a meal just to keep business ticking along.



&#8220;When &#8230; you have not sold anything since morning, it&#8217;s better to have that money than to allow the person to go,&#8221; said Akiga. &#8220;So you just ask the person to sit and then give him food for the money he has.&#8221;



Since taking office in May last year, Tinubu has implemented reforms including slashing fuel and electricity subsidies and devaluing the naira currency twice NGN=D1 to try to increase investment and boost output. He says the policies are necessary to put Nigeria on a long-term growth path.



But the economy is growing well short of the 6% annual expansion targeted by Tinubu, while the reforms have driven inflation to a 28-year high, worsening a cost-of-living crisis.



Analysts&nbsp;say&nbsp;economic hardship&nbsp;is&nbsp;also fuelling crime which in turn is hurting people&#8217;s livelihoods.



Bismarck Rewane, a prominent economic analyst who was appointed to Tinubu&#8217;s economic council in March, agreed with the need for economic reforms but said more attention should have been paid to their implementation.



&#8220;The reforms came too quickly but there was no concrete plan to deal with the impact these reforms would have on the people,&#8221;&nbsp;he said.



The end of the fuel subsidy, which for decades made petrol very cheap for Nigerians, has hit people particularly hard. Petrol is widely used in the country to power not only cars but also generators for small businesses and homes.



Anthony Idowu, a 47-year-old bank employee, said the cost of filling his car had nearly quadrupled to 36,000 naira ($30) since the petrol subsidy was removed&nbsp;last year.



He now runs his petrol generator at home for only four hours a day to save money even if it means sleeping without a fan in the sweltering heat of Lagos, he said.



<h2 class="wp-block-heading" id="h-vicious-cycle">VICIOUS CYCLE</h2>



The government has also been criticised for not doing enough to sort out the country&#8217;s security problem, which&nbsp;some people&nbsp;say is affecting their livelihoods.&nbsp;The government insists the security situation is improving, saying it has eliminated thousands of armed gang members and Islamist fighters.



Abdulrasheed Isa Gora, a 32-year-old petty trader and farmer in the Birnin Magaji area of northwest Zamfara state, said attacks by armed gangs were on the rise, making it difficult to farm or travel to other communities to sell his wares.



Earlier this week, he and members of his community paid 50 million naira ($42,000) to free 18 family members and some residents who were kidnapped on March 10. Some 40 others remain missing, he said.



&#8220;We are living by God&#8217;s favour, not the government&#8217;s,&#8221; said Gora.



Nigeria has long struggled with insurgency and attacks by armed gangs who kidnap for ransom in the north, where poverty levels are higher.



But data from the Armed Conflict Location &amp; Event Data Project showed the number of kidnappings doubled to 7,086 in Tinubu&#8217;s first year in office.



Security analysts say economic hardship and the allure of ransom payments are driving mass abductions.



&#8220;That could well be the case,&#8221; said Information Minister Mohammed Idris, when contacted by Reuters.



&#8220;That is why the president is encouraging everyone not to pay ransom because when you pay ransom you are going to continue on this cycle of violence,&#8221; he said.



Back in the restaurant, it was economic uncertainty that was at the&nbsp;top&nbsp;of Akiga&#8217;s worries.



From daily sales of 100,000 naira ($84) a year ago, she was hardly making 20,000 naira ($17) now and that was quickly used up buying more stock.



&#8220;Any money you make you take it back to the market,&#8221; she said.



(Reporting by MacDonald Dzirutwe in Lagos and Abraham Achirga in Abuja, additional reporting by Ahmed Kingimi in Maiduguri; Editing by Ana Nicolaci da Costa)

FILE PHOTO: Summit for a new global financing pact takes place in Paris

Hardship, insecurity cloud Nigeria president’s first year in office

<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>



May 30 (Reuters) &#8211; Kenya&#8217;s shilling and Zambia&#8217;s kwacha are expected to gain ground against the dollar and Ghana&#8217;s cedi will weaken, while Nigeria&#8217;s naira and Uganda&#8217;s shilling are forecast to hold steady in the next week to Thursday, traders said.



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



Kenya&#8217;s shilling is expected to gain ground, supported by dollar inflows from tea exporters and remittances, and low demand from importers waiting for better rates.



Commercial banks quoted the shilling at 130.50/131.50 per dollar, compared with last Thursday&#8217;s close of 131.50/132.50.



&#8220;I see importers staying away for now hoping for better rates. If they keep off and CBK (central bank) stays away, I see it taking down (the) 130 mark,&#8221; a trader at one commercial bank said.



The central bank says it only intervenes to smooth out volatility when the shilling is moving too fast in either direction, and has no preferred level.



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



Nigeria&#8217;s naira could trade around current levels next week, after the central bank intervened in the market, and its Open Market Operations (OMO) auctions also attracted foreign inflows that helped ease pressure from futures contracts that paid out this week.



LSEG data showed the naira trading at 1,421 to the dollar on the official market on Thursday, around the same range a week ago. The unit was quoted at 1,485 on the parallel market on Thursday.



&#8220;The exchange rate will remain volatile because the fundamentals such as crude oil receipts remain low,&#8221; one trader said. &#8220;But there is scope to appreciate because the central bank is keen for the naira not to fall below a certain threshold.&#8221;



<h2 class="wp-block-heading" id="h-ghana">GHANA</h2>



Ghana&#8217;s cedi is expected to extend its decline against the dollar on persistent strong demand from local businesses.



LSEG data showed the cedi was bid at 14.69 per dollar, compared with last Thursday&#8217;s closing rate of 14.55.



&#8220;The local unit continued to face headwinds in recent sessions as FX illiquidity persists. Flows have been hard to come by, while demand for the greenback remains elevated — mainly from the manufacturing and commerce sectors,&#8221; said Sedem Dornoo, senior trader Absa Bank Ghana.



&#8220;Up ahead, it is likely the cedi will remain under pressure as FX demand remains firm.&#8221;



Chris Nettey, head of trading at Stanbic Bank Ghana, said the cedi continued to weaken despite the central bank&#8217;s assurances it would take steps to curb the decline and news the government had secured a draft memorandum of understanding on debt restructuring from bilateral creditors.



&#8220;We expect the narrative to continue with an eye on the actions of the central bank in the coming sessions,&#8221; he added.



The cedi is down by 19% so far this year against the dollar. The Bank of Ghana says this is due to high import demand, low export revenue and currency speculation.



<h2 class="wp-block-heading" id="h-uganda">UGANDA</h2>



The Ugandan shilling is seen trading in a stable range in the coming days, with most players staying on the sidelines as they await reading of the 2024/2025 (July-June) budget, traders said.



At 0955 GMT commercial banks quoted the shilling at 3,810/3,820,compared to last Thursday&#8217;s close of 3,820/3,830.



Uganda&#8217;s finance minister is expected to present the next financial year&#8217;s budget early June although the date has not yet been set.



&#8220;We&#8217;re unlikely to see a lot of activity before the budget,&#8221; said a trader at one commercial bank adding the shilling will mostly remain in a stable range around 3,800 against the dollar before then.



<h2 class="wp-block-heading" id="h-zambia">ZAMBIA</h2>



The kwacha may gain marginally against the dollar next week due to positive sentiment after bondholders accepted Zambia&#8217;s debt restructuring proposal.



On Thursday, the currency of Africa&#8217;s second-largest copper producer was trading at 27.10 per dollar from 26.20 a week ago.



&#8220;The short-term outlook for the local currency is modest gains owing to bondholder support for debt restructuring,&#8221; Access Bank said in a note. 



(Reporting by George Obulutsa, Christian Akorlie, Chris Mfula, Elisha Bala-Gbogbo; Editing by Bate Felix)

Kenyan shilling to firm, Ghana cedi expected to weaken

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VZCH2MQACZMNTKMXQUEJ4MJKCM-820x541.jpg" alt="" class="wp-image-492460" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VZCH2MQACZMNTKMXQUEJ4MJKCM-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VZCH2MQACZMNTKMXQUEJ4MJKCM-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VZCH2MQACZMNTKMXQUEJ4MJKCM-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VZCH2MQACZMNTKMXQUEJ4MJKCM-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VZCH2MQACZMNTKMXQUEJ4MJKCM-1536x1013.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VZCH2MQACZMNTKMXQUEJ4MJKCM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Africa&#8217;s central bank governor, Lesetja Kganyago, delivers a keynote address on monetary policy, growth and jobs at the University of the Witwatersrand in Johannesburg, South Africa, November 1, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



PRETORIA, May 30 (Reuters)&nbsp;&#8211;&nbsp;Below are some quotes from South African Reserve Bank Governor Lesetja Kganyago at a news conference to announce the central bank&#8217;s latest interest rate decision.



<h2 class="wp-block-heading" id="h-inflation">INFLATION</h2>



&#8220;We now see inflation stabilising at our 4.5% objective in the second quarter of next year. This is an improvement on our March forecast, which only reached this milestone at the end of 2025.&#8221;



&#8220;The changes to the outlook, however, are not large when compared to our March forecast. Average inflation for 2025 is only a tenth of a percentage point lower. The task of achieving our inflation objective is not yet done.&#8221;



&#8220;The Committee remains concerned that inflation expectations are elevated. After three years of inflation being above 4.5%, few survey respondents, especially from businesses and trade unions, now believe that inflation will be at 4.5% in two years&#8217; time.&#8221;



&#8220;Although the Monetary Policy Committee (MPC) assesses the inflation forecast risks to be broadly balanced at present, high inflation expectations require that we deliver on our target sooner rather than later, to re-anchor expectations.&#8221;



<h2 class="wp-block-heading" id="h-growth">GROWTH</h2>



&#8220;Economic activity indicators for the first quarter have been coming in worse than expected, despite reduced electricity load-shedding (power cuts). However, these higher-frequency data can be volatile.&#8221;



&#8220;We still forecast GDP growth of 1.2% this year. The growth numbers for the outer years also remain unchanged. We assess the risks to the growth outlook as balanced.&#8221;



&#8220;The recent improvement in the power supply, with no load-shedding since 26 March, is a welcome development. We have revised our load-shedding assumption down, but additional revisions may be required if this performance is sustained.&#8221;



<h2 class="wp-block-heading" id="h-decision">DECISION</h2>



&#8220;The MPC decided to keep the repo rate unchanged at 8.25%. The decision was unanimous.&#8221;



&#8220;The forecast continues to see policy normalisation, with rates easing into more neutral territory by next year.&#8221;



&#8220;Decisions of the MPC will continue to be data dependent, and sensitive to the balance of risks to the outlook. We are committed to stabilising inflation at the mid-point of the target band.&#8221;



(Compiled by Alexander Winning)

South Africa’s central bank governor to delivers keynote address

South African central bank governor’s comments on rate decision

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/PPA7LZHDAZIPJMJ7KHMLZAMWME-1-820x536.jpg" alt="" class="wp-image-479372" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/PPA7LZHDAZIPJMJ7KHMLZAMWME-1-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/PPA7LZHDAZIPJMJ7KHMLZAMWME-1-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/PPA7LZHDAZIPJMJ7KHMLZAMWME-1-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/PPA7LZHDAZIPJMJ7KHMLZAMWME-1-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/PPA7LZHDAZIPJMJ7KHMLZAMWME-1-1536x1003.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/PPA7LZHDAZIPJMJ7KHMLZAMWME-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows the logo of South Africa&#8217;s central reserve bank, at the reserve bank offices in Pretoria, South Africa, January 26, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



PRETORIA, May 30 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s central bank kept its main interest rate unchanged at 8.25%&nbsp;on Thursday,&nbsp;saying that high inflation expectations required &#8220;that we deliver on our target sooner rather than later&#8221;.



The decision was unanimous and came a day after the country held a pivotal general election. Early results show the ruling African National Congress was on course to lose a majority it has held for 30 years.



All 20 economists in a May 20-23 Reuters poll predicted there would be no change in the repo rate ZAREPO=ECI.



The South African Reserve Bank has kept monetary policy tight to try to steer inflation back towards the midpoint of its 3%-6% inflation target range.



Consumer inflation stood at 5.2% year on year&nbsp;ZACPIY=ECI&nbsp;in April, the latest month for which data is available, down slightly from 5.3% in March.



(Reporting by Kopano Gumbi and Alexander Winning; Additional reporting by Tannur Anders; Editing by Bate Felix)

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