<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU.jpg" alt="" class="wp-image-420130" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">The International Monetary Fund logo is seen at IMF headquarters in Washington, U.S., October 14, 2017. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



JOHANNESBURG, May 22 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said on Wednesday it was releasing a combined $164.6 million in funds to Rwanda after its executive board concluded reviews of the country&#8217;s&nbsp;support programmes.



Rwanda&#8217;s economy is forecast to expand 6.6% this year and 6.5% next year after an 8.2% expansion last year, IMF said in a statement.



&#8220;While fiscal consolidation may temporarily dampen growth, a rebound to 7.3 percent is anticipated in the medium term,&#8221; it said.



Rwanda&#8217;s economy largely depends on agriculture, tourism and manufacturing.



(Reporting by Bhargav Acharya, Writing by Tannur Anders, George Obulutsa; Editing by Bate Felix)

FILE PHOTO: The International Monetary Fund logo is seen at IMF headquarters in Washington

IMF to release $164.6 mln to Rwanda

Can the opposition alliance overcome Modi’s BJP in New Delhi?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="515" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/E3QSTNRI5NLCHAEJURPRJHWWEI-820x515.jpg" alt="" class="wp-image-489417" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/E3QSTNRI5NLCHAEJURPRJHWWEI-820x515.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/E3QSTNRI5NLCHAEJURPRJHWWEI-300x188.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/E3QSTNRI5NLCHAEJURPRJHWWEI-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/E3QSTNRI5NLCHAEJURPRJHWWEI-768x482.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/E3QSTNRI5NLCHAEJURPRJHWWEI-1536x964.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/E3QSTNRI5NLCHAEJURPRJHWWEI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: FILE PHOTO: The Anglo American logo is seen in Rusternburg October 5, 2015. Picture taken October 5, 2015. REUTERS/Siphiwe Sibeko//File Photo</figcaption></figure>



LONDON, May 22 (Reuters) &#8211; Anglo American (AAL.L), opens new tab on Wednesday rejected a third takeover proposal from BHP Group (BHP.AX), opens new tab that valued the company at 38.6 billion pounds ($49.18 billion), but agreed to a one-week extension for its rival to table a binding offer.



The move marks the third unsuccessful offer in a month from BHP, the world&#8217;s biggest listed mining group, as Anglo works on a radical plan to divest its less profitable coal, nickel, diamond and platinum businesses.



The 29.34 pounds per share approach, based on undisturbed share prices at market close on April 23 and raised from an initial 25.08 pounds, is still conditional on Anglo un-bundling its platinum and iron ore assets in South Africa, the country where it was founded and has deep roots, employing more than 40,000 people.



Anglo reiterated that this condition carries significant execution and completion risks.



BHP&#8217;s proposal &#8220;does not address the Board&#8217;s concerns about the structure, which results in significant complexity, execution risks, an extended timeline to completion,&#8221; Anglo chairman Stuart Chambers said in a statement.



&#8220;(It) consequently has the potential for material value leakage to be disproportionately suffered by Anglo American&#8217;s shareholders,&#8221; he added.



Anglo&#8217;s share price reversed earlier losses at 27.15 pounds, up 1% by 1344 GMT.



BHP said in a separate statement that it will not increase the percentage of its shares it is offering Anglo&#8217;s shareholders as part of the deal, unless a third party makes a competing offer.



Analysts at JP Morgan last week said BHP would need to boost its offer by around 30% to reflect fair value for Anglo and its prized copper assets in Chile and Peru.



Developments such as artificial intelligence and automation, and the energy transition including electric vehicles and renewable energy, have driven up demand prospects for copper cable used to conduct electricity.



Reporting by Clara Denina and Felix Njini; additional reporting by Anousha Sakoui; Editing by Veronica Brown, Shinjini Ganguli, Kirsten Donovan

FILE PHOTO: BHP-Anglo American deal raises alarm in Japan’s steel industry

Anglo rejects BHP’s third offer, but leaves door open to engage with rival

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/HSRFB4DE3VJQHL6HXJ7GNC6KSA-820x562.jpg" alt="" class="wp-image-489354" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/HSRFB4DE3VJQHL6HXJ7GNC6KSA-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/HSRFB4DE3VJQHL6HXJ7GNC6KSA-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/HSRFB4DE3VJQHL6HXJ7GNC6KSA-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/HSRFB4DE3VJQHL6HXJ7GNC6KSA-768x527.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/HSRFB4DE3VJQHL6HXJ7GNC6KSA-1536x1053.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/HSRFB4DE3VJQHL6HXJ7GNC6KSA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A worker attends to machinery at a smelter plant at Anglo American Platinum&#8217;s Unki mine in Shurugwi, Zimbabwe, May 16, 2019. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



JOHANNESBURG, May 22 (Reuters)&nbsp;&#8211;&nbsp;BHP Group&#8217;s&nbsp;BHP.AX&nbsp;$43 billion takeover proposal for smaller rival Anglo American&nbsp;AAL.L&nbsp;needs a &#8220;meaningful revision&#8221;, Anglo&#8217;s second-biggest investor said on Wednesday, as the clock ticks for the world&#8217;s No.1 miner to submit a binding offer.



BHP&#8217;s latest all-share proposal, raised from an initial $39 billion, was dismissed by Anglo as significantly undervaluing the company and being difficult to execute.



BHP&#8217;s offer should reflect both the value of existing Anglo assets and the future options and benefits that BHP can derive, specifically from Anglo&#8217;s unlisted assets, said South Africa&#8217;s Public Investment Corporation (PIC), which owns a roughly 7% stake in Anglo, second only to BlackRock&#8217;s 9.6% holding.



&#8220;This would require a meaningful revision of the current BHP proposal that should take into consideration the material risks that current shareholders of both Anglo and its subsidiaries would have to assume,&#8221; it said.



The PIC, which manages about 2.6 trillion rand ($143 billion) in assets, is Africa&#8217;s second-biggest fund manager. It is also a top investor in Anglo Platinum and Kumba Iron Ore &#8211; two South African units of Anglo that BHP doesn&#8217;t want included in its portfolio, should its deal succeed.



BHP, which has until 1600 GMT on Wednesday to make a binding offer, has insisted that Anglo divests its platinum and iron ore units in South Africa as a condition for the merger.



Anglo has rebuffed two all-share proposals from BHP as inadequate and too difficult to execute and last week unveiled plans for a break-up to focus on energy transition metal copper, while spinning out or selling its coal, nickel, diamond and platinum businesses.



Anglo CEO Duncan Wanblad&#8217;s plan to refocus the company on copper, iron ore and fertiliser assets could lead investors to give it a premium share price rating similar to pure copper companies such as Antofagasta or Freeport-McMoRan in future, Ian Woodley, a portfolio manager at Old Mutual, said.



A failure to improve its market valuation could still make Anglo vulnerable to a takeover, he added.Anglo shareholder Legal &amp; General Investment Management (LGIM) said on Monday it supported the break-up plan and did not see a clear reason for the board to change stance on BHP&#8217;s offer, unless there was a reasonable premium to the underlying fair value of Anglo&#8217;s assets.



($1 = 18.2234 rand)



(Reporting by Felix Njini and Clara Denina; Writing by Bhargav Acharya and Tannur Anders; Editing by Alexander Winning and Mark Potter)

FILE PHOTO: BHP insists Anglo American’s South African assets must go in any takeover, sources say

Major Anglo investor says BHP bid needs ‘meaningful revision’

Why Denver Is Struggling To Keep Up With Its Economic Boom

<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/YCG36AWNFBPL5CKDLPPYGQ5XRU-820x547.jpg" alt="" class="wp-image-489385" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YCG36AWNFBPL5CKDLPPYGQ5XRU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YCG36AWNFBPL5CKDLPPYGQ5XRU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YCG36AWNFBPL5CKDLPPYGQ5XRU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YCG36AWNFBPL5CKDLPPYGQ5XRU-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YCG36AWNFBPL5CKDLPPYGQ5XRU-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/YCG36AWNFBPL5CKDLPPYGQ5XRU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Cracks are seen in the dried up municipal dam in drought-stricken Graaff-Reinet, South Africa, November 14, 2019. REUTERS/Mike Hutchings/File Photo</figcaption></figure>



HARARE, May 22 (Reuters)&nbsp;&#8211;&nbsp;The U.N. World Food Programme (WFP) needs $400 million to feed millions of people in Southern Africa following a drought that plunged parts of the region into hunger, the programme said on Wednesday.



The WFP told Reuters it needed urgent funding for six months to support drought relief in Zimbabwe, Zambia and Malawi, after harvests fell as a result of an El Niño-induced drought that has affected 4.8 million people.



El Niño, a weather phenomenon that disrupts wind patterns and warms the temperature in parts of the Pacific Ocean, can impact crop yields by reducing rain levels.



&#8220;It&#8217;s fair to say this will probably be the biggest El Niño response we have ever done in Southern Africa,&#8221; WFP spokesperson Tomson Phiri told Reuters.



About 70% of the Southern African population that relies on rain-fed agriculture had their harvests &#8220;wiped out&#8221; by lack of rains, Phiri added.



Phiri said the WFP, which also provides cash payouts for hungry communities, is looking to buy grain from outside markets.



In August last year WFP spent $14 million to support communities in Lesotho, Madagascar, Mozambique and Zimbabwe, Phiri said.



Successive droughts in the region have caused dwindling grain stocks, forcing affected countries like Zimbabwe to obtain grain abroad.



A group of private millers in Zimbabwe are planning to import 1.4 million metric tonnes of maize from Brazil, Argentina and other countries to help address hunger.



In Zimbabwe Finance Minister Mthuli Ncube said the government will receive a $32 million insurance payout for drought relief from the African Union Climate Agency.



Ncube said part of the funding will be used as cash transfers for vulnerable communities with some going to humanitarian agencies to provide support for procuring food.



(Reporting by Nyasha Chingono; Editing by Tannur Anders, William Maclean)

FILE PHOTO: Cracks are seen in the dried up municipal dam in drought-stricken Graaff-Reinet,

UN food agency looks for $400 mln to feed millions in southern Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="622" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CVOYCLDIW5OFFPIXIALIMN65GA-820x622.jpg" alt="" class="wp-image-489351" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CVOYCLDIW5OFFPIXIALIMN65GA-820x622.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CVOYCLDIW5OFFPIXIALIMN65GA-300x227.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CVOYCLDIW5OFFPIXIALIMN65GA-119x90.jpg 119w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CVOYCLDIW5OFFPIXIALIMN65GA-768x582.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CVOYCLDIW5OFFPIXIALIMN65GA-1536x1164.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/CVOYCLDIW5OFFPIXIALIMN65GA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of fog over the Great Pyramids and old houses in Cairo, Egypt 24 January 2024. REUTERS/Amr Abdallah Dalsh/File Photo</figcaption></figure>



LONDON, May 22 (Reuters)&nbsp;&#8211;&nbsp;From Brazil, Nigeria and Turkey to even some of the riskiest emerging markets such as Egypt and Zambia, evidence is growing that a decade-long deterioration in sovereign credit ratings has finally started to reverse.



Economists watch ratings because they influence a country&#8217;s borrowing costs and many are now highlighting a turnaround that seems incongruous with the usual warnings about rising debt pressures.



According to Bank of America, almost three-quarters of all sovereign rating moves by S&amp;P, Moody&#8217;s and Fitch this year have been in a positive direction, compared with the almost 100% that went the other way in the first year of the COVID pandemic.



With that and the spike in global interest rates now in the rear view mirror, more good news should be coming too.



Moody’s now has 15 developing economies on a positive outlook &#8211; rating firm parlance for an upgrade watch &#8211; one of its highest numbers ever. S&amp;P has 17, while Fitch has seven more positive than negative outlooks, its best ratio since a post-global financial crisis rebound in ratings in 2011.



Fitch&#8217;s global head of sovereign research Ed Parker said the turnaround has been down to a combination of factors.



For some countries it has been a general recovery from COVID and/or the energy price spikes caused by the Ukraine war. Others are seeing country-specific improvements in policymaking, while a core group of junk-rated &#8220;frontier&#8221; nations are now benefiting from suddenly being able to access debt markets again, he said.



Aviva Investors&#8217; head of EM hard currency debt, Aaron Grehan, describes the current upgrade wave as a &#8220;definitive shift&#8221; that has also coincided with a sharp drop in the premiums that emerging markets almost everywhere have had to pay to borrow.



&#8220;Since 2020, well over 60% of all rating actions have been negative. In 2024, 70% have been positive,&#8221; Grehan said, adding that Aviva&#8217;s internal scoring models were similar.



<h2 class="wp-block-heading" id="h-decade-of-downgrades">DECADE OF DOWNGRADES</h2>



The awkward reality though is that the current run of upgrades will not make up for the last 10-15 years.



Turkey, South Africa, Brazil and Russia all lost coveted investment grade scores during that time, while a deluge of debt almost everywhere apart from the Gulf has left the average EM credit rating more than a notch lower than it used to be.



And though some countries argue that developed economies where debt is still surging are being treated more leniently by the rating firms, EM finances are hardly sparkling now.



Eldar Vakitov, a sovereign analyst and &#8220;bond vigilante&#8221; at M&amp;G Investments points to the International Monetary Fund&#8217;s recent forecast that the average EM fiscal deficit will edge up to 5.5% of GDP this year.



Just a year ago, the assumption was that the 2023 EM fiscal expansion was a one-off that would be fully reversed this year. Now the EM fiscal deficit is expected to remain above 5% of GDP until the end of the Fund’s forecast horizon in 2029.



So why all the rating upgrades?



&#8220;For some countries it is all about the starting point,&#8221; Vakitov said, explaining that even though government deficits were still wide, they had at least dropped down from peak COVID levels.



A few governments, such as Zambia, are getting a natural lift from coming out of debt restructurings while a number of places are making obvious policy improvements.



Turkey, which has already had a couple of upgrades for attacking its inflation problem head on, and Egypt which seems to have shaken off default worries, are both expected to see multi-notch upgrades now, according to market pricing.



&#8220;Rating agencies tend to be slow though,&#8221; Vakitov said, &#8220;so it often takes them a lot of time to give upgrades.&#8221;



<h2 class="wp-block-heading" id="h-coupon-payments">COUPON PAYMENTS</h2>



The downgrades have not stopped completely. Moody&#8217;s and Fitch have both put China on a warning over the last six months, Israel&#8217;s war has led to its first ever downgrades and Panama has been stripped of one of its investment grades.



Three years on from COVID spending splurges and the bills are having to be paid too. EM hard currency debt amortisations and coupon payments are expected to reach an all-time high of $134 billion this year, JP Morgan estimates.



That is up by $32 billion from last year, so it is not surprising then that emerging market policymakers are eager to do all they can to get their ratings up and keep borrowing costs down.



Indonesia&#8217;s Finance Minister Sri Mulyani Indrawati explained in London this month how the agencies had doubted her when she told them during COVID that Indonesia would get its deficit back below 3% of GDP within 3 years.



&#8220;It ended up that we were able to consolidate the fiscal (position) in only two years,&#8221; she said. &#8220;So I always like to say to my rating agency staff, I won the bet, so you have to upgrade my rating!&#8221;



(Reporting by Marc Jones; Editing by Alison Williams)

FILE PHOTO: A general view of fog over the Great Pyramids and old houses in Cairo

Emerging market credit ratings are finally looking up again

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/2BALKQIMVVOB7NOVSEI4UNEZRI-820x547.jpg" alt="" class="wp-image-489335" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/2BALKQIMVVOB7NOVSEI4UNEZRI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/2BALKQIMVVOB7NOVSEI4UNEZRI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/2BALKQIMVVOB7NOVSEI4UNEZRI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/2BALKQIMVVOB7NOVSEI4UNEZRI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/2BALKQIMVVOB7NOVSEI4UNEZRI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/2BALKQIMVVOB7NOVSEI4UNEZRI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A Microsoft logo is seen a day after Microsoft Corp&#8217;s $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, U.S. June 14, 2016. REUTERS/Lucy Nicholson/File Photo</figcaption></figure>



May 22 (Reuters)&nbsp;&#8211;&nbsp;Microsoft&nbsp;MSFT.O&nbsp;is partnering with UAE-based AI firm G42 to invest $1 billion in a data center in Kenya as part of its efforts to expand cloud-computing services in East Africa, the companies said on Wednesday.



The data center, which will be built by G42 and its partners, will be powered by geothermal energy and provide access to Microsoft&#8217;s Azure through a new cloud region for East Africa.



<h2 class="wp-block-heading" id="h-why-it-s-important">WHY IT&#8217;S IMPORTANT</h2>



Abu Dhabi-based&nbsp;G42,&nbsp;in which Microsoft invested $1.5 billionlast month, has&nbsp;begun training an open-source large-language AI model in Swahili and English.



<h2 class="wp-block-heading" id="h-context">CONTEXT</h2>



Amazon.com&nbsp;AMZN.O, Microsoft and Alphabet&nbsp;GOOGL.Oare investing billions in new data centers across regions to cater to a boom in demand for cloud and generative AI-related services.



<h2 class="wp-block-heading" id="h-what-s-next">WHAT&#8217;S NEXT</h2>



The letter of intent will be signed on Friday between Microsoft, G42 and Kenya&#8217;s Ministry of Information, Communications and the Digital Economy as part of the country&#8217;s President William Ruto&#8217;s state visit to the United States, the Windows maker said.



Microsoft also said that the data center will become operational within two years of the parties signing definitive agreements.



(Reporting by Akash Sriram in Bengaluru; Editing by Nivedita Bhattacharjee and Anil D&#8217;Silva)

FILE PHOTO: A Microsoft logo is seen a day after Microsoft Corp’s (MSFT.O) $26.2 billion purchase of LinkedIn Corp (LNKD.N), in Los Angeles

Microsoft ties up with UAE-based AI firm to invest $1 bln in Kenya data center

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-820x562.jpg" alt="" class="wp-image-489318" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-1536x1052.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Customers push trolleys as they shop at a Pick n Pay store at the Trade Route Mall, in Lenasia outside Johannesburg, South Africa, February 8, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, May 22 (Reuters)&nbsp;&#8211;&nbsp;Pick n Pay&nbsp;PIKJ.J&nbsp;said on Wednesday it expects to swing to a full-year loss as South Africa&#8217;s third-biggest grocer takes an impairment of 2.8 billion rand ($155 million) on loss-making and underperforming core supermarket stores.



But the market cheered a debt restructuring agreement with lenders, pushing its shares up 9.40% by 0755 GMT.



New CEO Sean Summers is tasked with turning round a company that has been losing market share against bigger rival Shoprite SHPJ.J and others for more than a decade in a highly promotional market as the economy struggles with high interest rates and rising inflation.



Specifically, he has to improve the performance of the core Pick n Pay supermarkets business.



Pick n Pay, which also owns discount grocery retailer Boxer, said the loss per share will range between 6.37 rand and 6.86 rand for the year ended on Feb. 25, compared with earnings per share of 2.43 rand in the previous year.



About 1.8 billion rand of the writedown is for selected loss-making company-owned Pick n Pay stores, &#8220;which will be closed or converted to Pick n Pay franchises or Boxer stores under the group&#8217;s strategic plan,&#8221; it said.



And a 1 billion rand impairment of assets is for underperforming company-owned stores that will remain open, the retailer added.



Other factors contributing to the expected loss include incremental net debt service costs and diesel expenses to run generators that help keep stores open during blackouts.



When it reports its results next Monday, the retailer expects to have increased group sales by 5.4%, boosted by Boxer and its clothing stores. Pick n Pay South Africa sales, however, are seen inching down by 0.2%.



Earlier in the year Summers announced a two-step recapitalisation plan that involves a rights issue to raise up to 4 billion rand and listing Boxer in order to repay all of its ballooning debt of 6.1 billion rand.



On Wednesday the company said it had concluded a debt restructuring agreement with short-term and long-term lenders that secures the group&#8217;s liquidity and funding up to September 1, 2025.



($1=18.0715 rand)



(Reporting by Nqobile Dludla, Editing by Louise Heavens and Clarence Fernandez)

FILE PHOTO: Pick n Pay sales grow but warns on extra costs from power cuts

South Africa’s Pick n Pay flags full-year loss with $154 mln impairment

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="531" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ARGIAOBTTJMZDB3GT55CBXY4SI-820x531.jpg" alt="" class="wp-image-489300" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ARGIAOBTTJMZDB3GT55CBXY4SI-820x531.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ARGIAOBTTJMZDB3GT55CBXY4SI-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ARGIAOBTTJMZDB3GT55CBXY4SI-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ARGIAOBTTJMZDB3GT55CBXY4SI-768x498.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ARGIAOBTTJMZDB3GT55CBXY4SI-1536x995.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ARGIAOBTTJMZDB3GT55CBXY4SI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man pushes a trolley loaded with a bag of maize meal outside a spaza shop in Thembisa, on the East Rand, in South Africa, August 2, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, May 22 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s inflation slowed slightly in April, its second decline in a row but it still remains above the central bank&#8217;s preferred level.



Headline consumer inflation dropped to 5.2% year on year in April from 5.3% in March, Statistics South Africa data showed. Economists polled by Reuters had predicted inflation would come in at 5.3%.



The South African Reserve Bank has been trying to steer inflation to the midpoint of its target range of 3% to 6%, keeping its main interest rate at 8.25%&nbsp;ZAREPO=ECI&nbsp;since May 2023.



The central bank said last month that the path back to 4.5% inflation would probably be &#8220;bumpy and protracted&#8221; due to setbacks in the disinflation trajectory.



On a month-on-month basis, headline inflation was at 0.3% in April compared to 0.8% a month before.



Core inflation, which excludes food and fuel prices, was at 4.6% year on year in April, down from 4.9% in March.



(Reporting by Bhargav Acharya; Editing by Alexander Winning)

ARGIAOBTTJMZDB3GT55CBXY4SI

South Africa inflation slows for second month in April

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107068685-gettyimages-1371981344-_sol2164e-820x462.jpeg" alt="" class="wp-image-489283" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107068685-gettyimages-1371981344-_sol2164e-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107068685-gettyimages-1371981344-_sol2164e-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107068685-gettyimages-1371981344-_sol2164e-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107068685-gettyimages-1371981344-_sol2164e-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/107068685-gettyimages-1371981344-_sol2164e.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The war between Russia and Ukraine — both major producers of food commodities and energy — has disrupted global production, trade and supply in these areas, leading to a surge in prices. Solstock | E+ | Getty Images</figcaption></figure>



U.K. inflation came in hotter than expected with a drop to 2.3% in April, the Office for National Statistics said Wednesday, prompting traders to pull back from bets on a June interest rate cut from the British central bank.



The headline reading declined from 3.2% in March. The April print marked the first time inflation has been below 3% since July 2021 and came within touching distance of the Bank of England’s 2% target.



Economists polled by Reuters had nevertheless expected a steeper drop to 2.1% in April.



Services inflation — a key measure being watched by the BOE because of the dominance of the sector in the U.K. economy and its impact on domestically-generated price rises — eased only slightly to 5.9% from 6%. That missed a forecast of 5.5% from both a Reuters poll and the British central bank.



Core inflation, excluding energy, food, alcohol and tobacco, dipped to 3.9% in April from 4.2% in March.



A dramatic drop in the headline rate was widely expected because of the year-on-year decline in energy prices. Investors were instead set to focus on core and services inflation, after BOE policymakers indicated they would be willing to cut interest rates some time in the summer, but stressed that the timing would depend on fresh data.



Following the print, money markets slashed the probability of a June rate cut to just 15%, down from 50% earlier in the day.



<h2 class="wp-block-heading" id="h-june-cut-unlikely"><a></a>June cut ‘unlikely’</h2>



Both core and services were “disappointing,” said Suren Thiru, economics director of the Institute of Chartered Accountants in England and Wales.



“Lingering concerns over underlying inflationary pressures mean a June rate cut is unlikely. However, these figures may convince more rate setters to vote to ease policy, providing a signal that a summer rate cut is still possible,” Thiru said in a note.



That positions the European Central Bank as the next major central bank likely to start bringing down rates, as its policymakers continue to suggest it would take a major shock to prevent a June cut. Members of the U.S. Federal Reserve have meanwhile struck a significantly more hawkish tone in recent weeks, pushing back market expectations for a cut statesside until after September at the earliest.



Paul Dales, chief U.K. economist at Capital Economics, said the latest inflation data has made a June rate cut from the Bank of England unlikely, and “casts some doubt over August too.”



That is particularly due to the high services figure, Dales said in a note, which “suggests the persistence in domestic inflation is fading even slower than the BOE had assumed.”



U.K. Prime Minister Rishi Sunak said on social platform X that “inflation is back to where it should be.”



Sunak’s ruling Conservative Party has been hoping for signs of an improving economic environment, as it lags in the polls ahead of a national election that must take place before the end of January 2025. The U.K. economy exited a shallow recession in the first quarter of the year, recording 0.6% growth.



BOE Governor Andrew Bailey has stressed that the central bank will remain politically independent in deciding the timeline of the next rate cut, irrespective of the forthcoming election.

107068685-gettyimages-1371981344-_sol2164e

UK inflation comes in hotter than expected, slashing June rate cut bets

India is gearing up to be chip powerhouse

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/TCKUIW7CHRO2RMH5MXMDLMBDDM-820x547.jpg" alt="" class="wp-image-414999" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/TCKUIW7CHRO2RMH5MXMDLMBDDM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/TCKUIW7CHRO2RMH5MXMDLMBDDM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/TCKUIW7CHRO2RMH5MXMDLMBDDM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/TCKUIW7CHRO2RMH5MXMDLMBDDM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/TCKUIW7CHRO2RMH5MXMDLMBDDM.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The logo of French oil and gas company Total is seen in Rueil-Malmaison, near Paris, France, March 2, 2021. REUTERS/Benoit Tessier</figcaption></figure>



May 21 (Reuters)&nbsp;&#8211;&nbsp;French oil major TotalEnergies&nbsp;TTEF.PA&nbsp;is pressing ahead with the development of the Kaminho oil project 100 kilometers off the coast of Angola after a final investment decision on the block, it said on Tuesday.



The $6 billion project involves developing two oil fields located in Block 20/11, Cameia and Golfino, according to a statement from Angola&#8217;s national hydrocarbon agency ANPG.



Italian engineering firm Saipem&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3HO18H&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">will convert</a>&nbsp;a very large crude carrier into a Floating Production Storage and Offloading (FPSO) unit, which will connect oil from the offshore fields to a subsea production network.



&#8220;This project&#8230; will become our seventh FPSO unit in the country and the first-ever development in the Kwanza basin,&#8221; TotalEnergies CEO Patrick Pouyanne said in a statement.



Production is expected to begin in 2028, with a plateau of 70,000 barrels of oil per day, the French company said in a statement.



TotalEnergies operates Block 20/11 with a 40% interest. Malaysia&#8217;s Petronas holds another 40%, and Angola&#8217;s Sonangol 20%



Angola, where TotalEnergies is the top operator, produces 1.1 million barrels of oil per day, making it Africa&#8217;s&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N3FY3GS&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">second-largest</a>&nbsp;crude exporter. Its fields however are declining by 15% each year.



The country has mounted an aggressive campaign to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3H61QI&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">attract investors</a>, maintain oil production, bring on new reserves and increase natural gas production, as sector interest moves on to newer discoveries in Guyana, Namibia and Suriname.



(Reporting by Olivier Sorgho and America Hernandez in Paris, Wendell Roelf in Cape Town; Editing by Tassilo Hummel and Jan Harvey)

TCKUIW7CHRO2RMH5MXMDLMBDDM

TotalEnergies moves ahead on $6 billion Kaminho oil project in Angola

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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/GettyImages-1763140582-820x547.jpg" alt="" class="wp-image-486652" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">SAINT PETERSBURG, RUSSIA &#8211; 2023/11/02: The national flag of the Federal Republic of Nigeria as a participating country at the 12th St. Petersburg International Gas Forum (SPIGF 2023). (Photo by Maksim Konstantinov/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



ABUJA, May 21 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank raised its benchmark lending rate&nbsp;by 150 basis points to&nbsp;26.25% from 24.75%&nbsp;NGCBIR=ECI, in a decision announced on Tuesday.



Analysts had widely predicted another hike given inflation has continued to soar and the local naira currency&nbsp;NGN=D1&nbsp;has been highly volatile.



The decision is the third rate increase this year, after hikes of 200 basis points in March and 400 basis points in February.



Inflation&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3HI4A6&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">reached</a>&nbsp;a 28-year high of 33.69% year-on-year in April&nbsp;NGCPIY=ECI, spurred by the government slashing petrol and electricity subsidies and twice devaluing the naira.



(Reporting by Chijioke Ohuocha, Elisha Bala-Gbogbo, MacDonald DzirutweEditing by Bate Felix)

The national flag of the Federal Republic of Nigeria as a

Nigeria’s central bank raises benchmark rate to 26.25%

<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/A-Singapore-Airlines-Boeing-777-300ER-passenger-aircraft-pictured-above-London-in-August-2022-820x462.jpg" alt="" class="wp-image-489003" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/A-Singapore-Airlines-Boeing-777-300ER-passenger-aircraft-pictured-above-London-in-August-2022-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/A-Singapore-Airlines-Boeing-777-300ER-passenger-aircraft-pictured-above-London-in-August-2022-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/A-Singapore-Airlines-Boeing-777-300ER-passenger-aircraft-pictured-above-London-in-August-2022-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/A-Singapore-Airlines-Boeing-777-300ER-passenger-aircraft-pictured-above-London-in-August-2022-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/A-Singapore-Airlines-Boeing-777-300ER-passenger-aircraft-pictured-above-London-in-August-2022.jpg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A Singapore Airlines Boeing 777-300ER passenger aircraft, pictured above London in August 2022. Nurphoto | Nurphoto | Getty Images</figcaption></figure>



One person died aboard a Singapore Airlines flight which encountered severe turbulence and diverted to Bangkok, the airline said Tuesday.



The flight had left London for Singapore. The aircraft was rerouted to land at the Suvarnabhumi Airport in Bangkok, according to Flightradar24 data.



“We can confirm that there are injuries and one fatality on board the Boeing 777-300ER. There were a total of 211 passengers and 18 crew on board,” the company said on the Facebook.



“Singapore Airlines flight&nbsp;#SQ321, operating from London (Heathrow) to Singapore on 20 May 2024, encountered severe turbulence en-route. The aircraft diverted to Bangkok and landed at 1545hrs local time on 21 May 2024,” it added.



This is a breaking news story, please check back for updates.

A-Singapore-Airlines-Boeing-777-300ER-passenger-aircraft-pictured-above-London-in-August-2022

One dead as Singapore Airlines flight encounters ‘severe turbulence’

<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/FACTBOX-What-is-Europes-landmark-AI-legislation-820x547.jpg" alt="" class="wp-image-489000" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/FACTBOX-What-is-Europes-landmark-AI-legislation-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/FACTBOX-What-is-Europes-landmark-AI-legislation-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/FACTBOX-What-is-Europes-landmark-AI-legislation-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/FACTBOX-What-is-Europes-landmark-AI-legislation-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/FACTBOX-What-is-Europes-landmark-AI-legislation-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/FACTBOX-What-is-Europes-landmark-AI-legislation-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



BRUSSELS, May 21 (Reuters)&nbsp;&#8211;&nbsp;European Union policymakers on Tuesday&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3HO1UO&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">endorsed</a>&nbsp;the world&#8217;s first comprehensive set of rules regulating the use of artificial intelligence (AI) in tools such as ChatGPT and in biometric surveillance that will likely come into force next month.



Here are the key points of the&nbsp;AI&nbsp;Act:



HIGH-RISK SYSTEMS



So-called high-risk&nbsp;AI&nbsp;systems &#8211; those deemed to have significant potential to harm health, safety, fundamental rights, the environment, democracy, elections and the rule of law &#8211; will have to comply with a set of requirements, such as undergoing a fundamental rights impact assessment, and obligations to gain access to the EU market.



AI&nbsp;systems considered to pose limited risks would be subject to very light transparency obligations, such as disclosure labels declaring that the content was&nbsp;AI-generated to allow users to decide on how to use it.



USE OF AI IN LAW ENFORCEMENT



The use of real-time remote biometric identification systems in public spaces by law enforcement will only be allowed to help identify victims of kidnapping, human trafficking, sexual exploitation, and to prevent a specific and present terrorist threat.



They will also be permitted in efforts to track down people suspected of terrorism offences, trafficking, sexual exploitation, murder, kidnapping, rape, armed robbery, participation in a criminal organisation and environmental crime.



GENERAL PURPOSE AI SYSTEMS (GPAI) AND FOUNDATION MODELS



GPAI&nbsp;and foundation models will be subject to lighter transparency requirements such as drawing up technical documentation, complying with EU copyright law and disseminating detailed summaries about the content used for algorithm training.



Foundation models classed as posing a systemic risk and high-impact GPAI&nbsp;will have to conduct model evaluations, assess and mitigate risks, conduct adversarial testing, report to the European Commission on serious incidents, ensure cybersecurity and report on their energy efficiency.



Until harmonised EU standards are published, GPAIs with systemic risks may rely on codes of practice to comply with the regulation.



PROHIBITED AI



The regulation bars the following:



&#8211; Biometric categorisation systems that use sensitive characteristics such as political, religious, philosophical beliefs, sexual orientation, race.



&#8211; Untargeted scraping of facial images from the internet or CCTV footage to create facial recognition databases;



&#8211; Emotion recognition in the workplace and educational institutions.



&#8211; Social scoring based on social behaviour or personal characteristics.



&#8211;&nbsp;AI&nbsp;systems that manipulate human behaviour to circumvent their free will.



&#8211;&nbsp;AI&nbsp;used to exploit the vulnerabilities of people due to their age, disability, social or economic situation.



WHO ENFORCES THE AI ACT



An&nbsp;AI&nbsp;Office within the European Commission will enforce the rules while an&nbsp;AI&nbsp;Board with EU representatives will assist the Commission and EU countries in applying the new legislation.



SANCTIONS FOR VIOLATIONS



Depending on the infringement and the size of the company involved, fines will start from 7.5 million euros ($8 million) or 1.5 % of global annual turnover, rising to up to 35 million euros or 7% of global turnover.



(Reporting by Foo Yun Chee, Editing by Helen Popper and Ed Osmond)

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IMF to release $164.6 mln to Rwanda

Can the opposition alliance overcome Modi’s BJP in New Delhi?

Anglo rejects BHP’s third offer, but leaves door open to engage with rival

Major Anglo investor says BHP bid needs ‘meaningful revision’

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South Africa inflation slows for second month in April

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India is gearing up to be chip powerhouse

TotalEnergies moves ahead on $6 billion Kaminho oil project in Angola

How working for Big Tech lost ‘dream job’ status

Nigeria’s central bank raises benchmark rate to 26.25%

One dead as Singapore Airlines flight encounters ‘severe turbulence’

What is Europe’s landmark AI legislation?

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