<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-1243645267-820x547.jpg" alt="" class="wp-image-545121" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-1243645267-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-1243645267-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-1243645267-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-1243645267-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-1243645267-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-1243645267-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The President of the Confederation of African Football (CAF) Patrice Motsepe, Host a Press Conference, in Algiers, Algeria, October 01, 2022. (Photo by APP/NurPhoto via Getty Images)</figcaption></figure>



ADDIS ABABA, Oct 22 (Reuters)&nbsp;&#8211;&nbsp;African football paid $50-million in an out of court settlement to former marketing company Lagardere Sports after abruptly cancelling their long-term agreement, the Confederation of African Football&#8217;s congress was told on Tuesday.



The French company had sued for compensation after their 10-year, $1-billion agreement was abruptly cancelled in 2019.



Lagardere Sports held the marketing, sponsorship and television rights to all CAF competitions for two decades, but CAF said it had to cancel the deal after two court rulings found that the agreement was made without proper tender.



The company, now known as Lagardere Unlimited, sued for compensation before accepting a settlement, with CAF paying in two equal tranches, the last of which was paid at the end of last year, CAF&#8217;s finance committee vice chairman Andrew Kamanga said.



CAF president Patrice Motsepe told congress the organisation had made a $72-million profit from this year&#8217;s Africa Cup of Nations finals in the Ivory Coast, significantly increased from a $4-million profit for the 2021 finals in Cameroon.



CAF said it projected a revenue of almost $150 million for the 2024-2025 financial year, with expenses of $138.2 million.



Some 30% of the budget would be spent on development programmes and contributions to CAF’s 54-member associations.



A proposal was approved to give each association president an annual salary of $50,000 from the $400,000 annual contribution.



Motsepe, expected to stand for re-election next year, said CAF wanted to increase African football&#8217;s revenue to $1-billion over the next eight years. &#8220;We are having a lot of discussions with potential sponsors,&#8221; he told the congress in the Ethiopian capital.



He said CAF wanted to give $1-million annually to each member association from 2026.



Motsepe also said CAF were reviewing rules on the treatment of visiting teams in the wake of Nigeria&#8217;s national team being held at a Libyan airport for a half day before last week&#8217;s scheduled Africa Cup of Nations qualifier.



Nigeria refused to play the game after saying they had been held hostage by Libyan authorities who diverted their charter plane to an unused airfield and then left them waiting.



&#8220;National teams must be treated with respect. If there are violations, we&#8217;ll take action,&#8221; said Motsepe.



(Writing by Mark Gleeson in Cape Town; Editing by Christian Radnedge)

President Of The (CAF) Patrice Motsepe In Algeria

African football paid out $50-million settlement over marketing rights

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108049870-17292742572024-10-18t103613z_1061388036_rc2xmaa99x9x_rtrmadp_0_russia-brics-putin-growth-820x461.jpeg" alt="" class="wp-image-545076" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108049870-17292742572024-10-18t103613z_1061388036_rc2xmaa99x9x_rtrmadp_0_russia-brics-putin-growth-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108049870-17292742572024-10-18t103613z_1061388036_rc2xmaa99x9x_rtrmadp_0_russia-brics-putin-growth-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108049870-17292742572024-10-18t103613z_1061388036_rc2xmaa99x9x_rtrmadp_0_russia-brics-putin-growth-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108049870-17292742572024-10-18t103613z_1061388036_rc2xmaa99x9x_rtrmadp_0_russia-brics-putin-growth-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108049870-17292742572024-10-18t103613z_1061388036_rc2xmaa99x9x_rtrmadp_0_russia-brics-putin-growth-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108049870-17292742572024-10-18t103613z_1061388036_rc2xmaa99x9x_rtrmadp_0_russia-brics-putin-growth.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Russian President Vladimir Putin attends the BRICS Business Forum in Moscow, Russia October 18, 2024.  Alexander Zemlianichenko | Via Reuters</figcaption></figure>



Russia is rolling out the red carpet to its geopolitical allies as it hosts the latest BRICS summit on Tuesday, pushing its agenda to create a “new world order” that challenges the West.



The group was initially comprised of Brazil, Russia, India and China before South Africa joined in 2010, giving the organization of rapidly economically-developing nations its current name. It has since morphed into a geopolitical forum for the world’s most powerful nations outside of the West.



The BRICS now have additional clout after Egypt, Ethiopia, Iran and the United Arab Emirates joined the group in January, with membership to the bloc becoming an attractive prospect for countries looking to boost trade, investment and economic development.



Russia has been trying to woo what’s collectively known as the “Global South” — or economically-developing countries in Asia, Africa, the Middle East and Latin America — and contrast to the “Global North” of industrialized nations, traditionally led by the U.S.



Russian President Vladimir Putin frequently comments on his ambition to establish what he calls a “new world order” to rival and usurp the geopolitical and economic pre-eminence enjoyed by the U.S.-led West.



Russia, holder of the rotating BRICS presidency and economically isolated and heavily sanctioned by the West, can also turn to this year’s summit to demonstrate that it still commands respect on the global stage and has powerful allies willing to turn a blind eye to its ongoing war in Ukraine.



Putin has described the beefed-up BRICS group as a “strong indication of the growing authority of the association and its role in international affairs” and signaled on Friday that he intends for the so-called “BRICS +” format to challenge the West on both a geopolitical and economic front.



“The countries in our association are essentially the drivers of global economic growth. In the foreseeable future, BRICS will generate the main increase in global GDP,” Putin told officials and businessmen&nbsp;last Friday&nbsp;at&nbsp;the&nbsp;BRICS business forum in Moscow,&nbsp;which precedes the group’s summit,&nbsp;in comments translated by Reuters.



“The economic growth of BRICS members will increasingly depend less on external influence or interference. This is essentially economic sovereignty,” Putin added.



Earlier in October, Putin said Moscow was open to using the summit for discussions with its allies on the “the parameters of interaction in the emerging multipolar world, and is open to discussing the issues of building a new world order with all our friends, partners and like-minded people,” he said, according to Russian state-owned news agency Tass.



Putin added that “it is in this spirit that we are preparing the BRICS and Outreach/BRICS Plus summit,” referring to the last day of the three-day summit when officials from almost 40 Asian, African, Middle Eastern and Latin American countries are attending as part of the group’s bid to expand ties with the “Global South.”



The expansion of the BRICS coalition is both significant and performative, one security analyst told CNBC.



“It is indicative of a collective movement away from the West, a demonstration of a fundamental shift within the world order that is seeking to challenge Western economic hegemony,” Callum Fraser,&nbsp;a research fellow in Russian and Eurasian security at the Royal United Services Institute (RUSI) think tank, told CNBC Monday.



Fraser added that it was “still unclear to what degree BRICS+ will be able to challenge the Western-dominated G7, or even to what degree they are able to align their visions of the international system.”



“Currently, the main glue that holds them together is the aspiration to achieve the same quality of life as in the West that they feel unable to achieve through cooperation with the West. Ultimately, BRICS+ is only anti-West in that it operates as an alternative institution. This means that it still remains to be seen what BRICS+ will provide for its member states, but increased cooperation among its members is extremely likely,” he said.



Russia’s chairing of the summit would be “utilized to maximum effect to demonstrate Russia’s strong position within this emerging order,” Fraser added.



<h2 class="wp-block-heading" id="h-global-leaders-attending"><a></a>Global leaders attending</h2>



The 16th BRICS summit is taking place under the theme of “strengthening multilateralism for&nbsp;just global development and&nbsp;security,” with the Kremlin stating that BRICS leaders will exchange views on&nbsp;“pressing issues on&nbsp;the&nbsp;global and&nbsp;regional agenda,” as well as on “the&nbsp;three main pillars of&nbsp;cooperation identified by&nbsp;the&nbsp;Russian chairmanship: politics and&nbsp;security, the&nbsp;economy and&nbsp;finance, and&nbsp;cultural and&nbsp;humanitarian ties.”



The Kremlin added that the possible expansion of the BRICS group through the establishment of a new category of “partner states” would also be discussed.



It’s unclear whether the elephant in the room — Russia’s ongoing war with Ukraine — will be acknowledged at the summit. Kremlin Spokesman Dmitry Peskov told the Izvestia newspaper that the conflict in Ukraine was not on the agenda, but he insisted that participants could “raise this issue at their discretion,” according to a Google translation.



The Kremlin appears eager to avoid mention of what it calls its “special military operation” in Ukraine, stating that the BRICS+ discussions would concern&nbsp;“pressing international issues, with a&nbsp;particular focus on&nbsp;the&nbsp;escalating situation in&nbsp;the&nbsp;Middle East and&nbsp;interactions between the&nbsp;BRICS countries and&nbsp;the&nbsp;Global South in&nbsp;the&nbsp;interests of&nbsp;sustainable development.”



Putin is set to hold meetings with various leaders in attendance, including India’s Prime Minister Narendra Modi, China’s President Xi Jinping, Turkey’s President Recep Tayyip Erdogan, Palestinian President Mahmoud Abbas and U.N. Secretary-General Antonio Guterres.



It’s also expected that Putin and his Iranian counterpart Masoud Pezeshkian&nbsp;could sign a “Comprehensive Strategic Partnership’ agreement” at the summit that could signal their commitment to deepening military and defense cooperation. following several years of exchanging military and technical support amid the war in Ukraine.



Meetings with South African President Cyril Ramaphosa and Egyptian President Abdel Fattah al-Sisi are also slated to take place this week, according to comments from Yury Ushakov, Putin’s foreign policy aide. Brazilian President Luiz Inácio Lula da Silva cancelled his trip to Russia after injuring his head in an accident at his home last weekend.



Saudi Arabia, which has been invited to join the BRICS&nbsp;group but has not yet formally acceeded, is also participating in the latest summit in the southwestern Russian city of Kazan. Argentina decided in 2023 not to join the group, citing a change in foreign policy.

108049870-17292742572024-10-18t103613z_1061388036_rc2xmaa99x9x_rtrmadp_0_russia-brics-putin-growth

Russia pushes ‘new world order’ agenda as it hosts beefed-up BRICS summit

<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>



Oct 22 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Tuesday.



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



Kenya&#8217; High Court is due to hold a hearing on Tuesday after declining the National Assembly&#8217;s request to lift other orders barring the swearing in of newly-appointed Deputy President Kithure Kindiki.



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



Asian stocks turned lower and the dollar stood by multi-month peaks on Tuesday as a sharp sell-off in bonds and a jump in gold suggested investors are hunkering down ahead of the U.S. election.



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



Oil prices eased on Tuesday as the top U.S. diplomat renewed efforts to push for a ceasefire in the Middle East and as slowing demand growth in China, the world&#8217;s top oil importer, continued to weigh on the market.



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



South Africa&#8217;s rand slipped against a stronger dollar on Monday, as investor focus shifts towards local inflation figures due later this week.



<h2 class="wp-block-heading" id="h-cameroon-politics">CAMEROON POLITICS</h2>



Cameroon&#8217;s 91-year-old president, Paul Biya, returned to the country on Monday after a 42-day absence that had sparked questions about his health and whereabouts.



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



Kenya said on Monday said it had handed over four Turkish refugees after accepting an extradition request by Ankara despite Amnesty International raising concerns they could face persecution at home if they were deported.



<h2 class="wp-block-heading" id="h-mozambique-election">MOZAMBIQUE ELECTION</h2>



The U.S. government on Monday condemned the weekend killings by gunmen of two Mozambique opposition figures ahead of protests against a disputed election result, with Washington urging &#8220;a swift and thorough investigation into the murders.&#8221;



<h2 class="wp-block-heading" id="h-sudan-aviation">SUDAN AVIATION</h2>



The Russian embassy in Sudan is investigating reports that a cargo plane carrying Russian crew members may have been shot down in the western part of the country, the embassy said on Monday.



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



Nigeria has blocked Shell&#8217;s sale of its entire onshore and shallow-water oil operations, but approved a similar deal by Exxon Mobil, the country&#8217;s upstream oil regulator said on Monday.



<h2 class="wp-block-heading" id="h-congo-security">CONGO SECURITY</h2>



The M23 rebel group has seized the town of Kalembe in eastern Democratic Republic of Congo, expanding its reach in the region, an official and a former lawmaker said on Monday.



<h2 class="wp-block-heading" id="h-sudan-war">SUDAN WAR</h2>



Sudan&#8217;s army said on Sunday a commander from its foe the Rapid Support Forces had defected with some of his troops, the first such move by a senior figure since the two sides went to war more than 18 months ago.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Oct 22

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108039375-1727312351704-gettyimages-1810856649-32-820x461.jpeg" alt="" class="wp-image-545014" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108039375-1727312351704-gettyimages-1810856649-32-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108039375-1727312351704-gettyimages-1810856649-32-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108039375-1727312351704-gettyimages-1810856649-32-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108039375-1727312351704-gettyimages-1810856649-32-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108039375-1727312351704-gettyimages-1810856649-32-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108039375-1727312351704-gettyimages-1810856649-32.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Close up stack of gold bars, financial wealth concepts and business Vector Photo Gallery | Istock | Getty Images</figcaption></figure>



Gold is in a “new bullish phase” after prices notched another record high, said asset management firm Sprott Asset Management, echoing other analysts who have predicted that the bullion will continue to scale new heights.



“Gold has entered a new bullish phase, driven by factors like central bank buying, rising U.S. debt and a potential peak in the U.S. dollar,” Paul Wong, market strategist at Sprott Asset Management, wrote in a note, after the price of the yellow metal advanced to a fresh record of $2,700 per ounce on Monday.&nbsp;



Spot gold is currently trading at $2,729.14 per ounce, while gold futures are at $2,741.20.



“Rising U.S. debt-to-GDP ratios have historically led to higher gold prices due to concerns over the sustainability of debt, currency devaluation and debt monetization,” Wong continued.



The U.S. Congressional Budget Office expects public debt to rise from 98% of GDP in 2023 to 181% of GDP in 2053, the highest level in the country’s history.



As debt increases, governments might resort to printing money to address deficits, which can devalue the currency, Wong explained. This erosion of trust in fiat currency enhances gold’s appeal as a reliable store of value.



Persistent inflationary pressures and difficult macroeconomic conditions plaguing global economies suggest that central banks and investors are more likely to allocate to precious metals, he added.



According to World Gold Council data, the net purchases of gold by central banks in the first half of 2024 rose to 483 tonnes, 5% above the previous record set in the first half of 2023.



A growing chorus of analysts have predicted that the price of gold will continue to rise to $3,000, with some expecting the commodity to cross $2,800 in the next three months.



Gold prices “look better now” than ever before, said Michael Widmer, commodities strategist at Bank of America. “I think we’re closer to $3,000 pounds.”



Widmer cited elevated government debt levels and brewing geopolitical uncertainty as reasons for the his bullish outlook.



Pledges from Israel and its adversaries, Hamas and Hezbollah, to continue fighting in Gaza and Lebanon have diminished hopes of a resolution of the ongoing conflict in the Middle East.



Rising geopolitical tensions usually lead investors to flock to safe-haven assets such as gold, motivated by a desire to buffer against risks and instability in global markets.



Citi analysts have also held on to their view that gold will hit $3,000 in the next six to nine months. If oil prices spike due to a near-term escalation in the Middle East, they added, gold should see a lift.



Despite a drop in Chinese retail demand over the last three months, gold prices have still performed “extremely well,” which reflects the willingness of buyers to pay higher prices, according to Citi.



Meanwhile, Commonwealth Bank of Australia’s Vivek Dhar said in a note on Monday that he sees gold averaging $3,000 in the fourth quarter of next year as a result of “persistent weakness in the U.S. dollar.”



Still, Dhar said he expects gold to average $2,800 this quarter. Citi recently upgraded their view, also predicting that gold will hit $2,800 in three months.

108039375-1727312351704-gettyimages-1810856649-32

‘New bullish phase’? As gold hits another high, analysts say more records are in sight

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="570" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/P6ORFY5TKVJHVLDLKUU7XJIJNQ-820x570.jpg" alt="" class="wp-image-544813" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/P6ORFY5TKVJHVLDLKUU7XJIJNQ-820x570.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/P6ORFY5TKVJHVLDLKUU7XJIJNQ-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/P6ORFY5TKVJHVLDLKUU7XJIJNQ-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/P6ORFY5TKVJHVLDLKUU7XJIJNQ-768x534.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/P6ORFY5TKVJHVLDLKUU7XJIJNQ-1536x1068.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/P6ORFY5TKVJHVLDLKUU7XJIJNQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South Africa&#8217;s Finance Minister Enoch Godongwana speaks during his 2024 budget speech in Cape Town, South Africa, February 21, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, Oct 21 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s mid-term budget review later this month is expected to show healthier public finances, but economists say it might be too early to loosen the purse strings.



Finance minister Enoch Godongwana is expected to present his first medium-term budget policy statement under South Africa&#8217;s new unity government on Oct. 30, setting out spending plans for the next three years.



Economists see potential for an improved budget outlook due to anticipated reductions in government expenditure and lower interest payments on debt, buoyed by currency appreciation.



Sentiment has been boosted by the government&#8217;s early success in fostering political stability as well as the end of crippling power cuts.



South Africa&#8217;s budget deficit for the 2024/25 fiscal year stood at 3.3% of GDP as of August, according to National Treasury data, lower than the same period last year. In February, the treasury forecast a deficit of 4.5% of GDP for the year.



Andrew Matheny, Managing Director of Economics Research at Goldman Sachs, said that the treasury was likely to meet that target.



&#8220;We don&#8217;t see much of a risk of overspending and exceeding the spending plans that they laid out on the revenue side,&#8221; said Matheny.



Although revenue collection has undershot the target so far, a decrease in expenditure coupled with the transfer of the first tranche of funds from the gold and foreign exchange account has reduced borrowing requirements, economists said.



Despite the wiggle room, there is no expectation the treasury will introduce any new spending initiatives outside of providing funding guidance on the government&#8217;s infrastructure investment programme and any above-inflation public sector wage increases for 2025.



President Cyril Ramaphosa pledged in July to revive the economy by turning the country &#8220;into a construction site&#8221;.



&#8220;The focus will probably be on job creation, things like the infrastructure development program, really pushing money into things that can get the economy going,&#8221; said Maarten Ackerman, chief economist at local financial firm, Citadel,



South Africa&#8217;s GDP growth is seen at 1.1% this year, according to the central bank. The bank believes growth could accelerate to 3.5% in the medium term with appropriate reforms.



(Reporting by Kopano Gumbi; Editing by Olivia Kumwenda-Mtambo and Christina Fincher)

South Africa’s Finance Minister Godongwana presents 2024 budget in Cape Town

South Africa’s budget to show healthier finances but discipline still needed, economists say

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="571" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/A5HRSRY5RNLW3IWBNWBNJO42SE-820x571.jpg" alt="" class="wp-image-544781" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/A5HRSRY5RNLW3IWBNWBNJO42SE-820x571.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/A5HRSRY5RNLW3IWBNWBNJO42SE-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/A5HRSRY5RNLW3IWBNWBNJO42SE-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/A5HRSRY5RNLW3IWBNWBNJO42SE-768x535.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/A5HRSRY5RNLW3IWBNWBNJO42SE-1536x1070.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/A5HRSRY5RNLW3IWBNWBNJO42SE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Protesters clash with police during a nationwide strike called by Mozambique presidential candidate Venancio Mondlane to protest the provisional results of an October 9 election, in Maputo, Mozambique, October 21, 2024. REUTERS/Siphiwe Sibeko</figcaption></figure>



MAPUTO, Oct 21 (Reuters) &#8211; Mozambique police on Monday fired teargas and bullets at protesters in the capital Maputo who had gathered at the scene where two opposition party figures were shot dead on Saturday after a disputed election.



A Reuters witness saw some police officers firing handguns while dispersing the crowd.



Adriano Nuvunga, director of Mozambique&#8217;s Centre for Democracy and Human Rights, said that two journalists and a security guard were hit by bullets but not seriously wounded.



A police spokesperson could not immediately be reached for comment.



The full results of Mozambique&#8217;s Oct. 9 national election are expected this week, with early results showing that the ruling party Frelimo is set for another win. Opposition candidates say the poll was rigged.



Frelimo has ruled the southern African country since 1975 and has been accused of electoral fraud by opposition leaders, civil society and election observers, which it denies.



Mozambique&#8217;s electoral commission has declined to comment on accusations of fraud. U.S.-based observers said the poll did not meet international standards for democratic elections, noting reports of vote buying, intimidation, inflated voter rolls and other issues.



&#8220;The police are turning this into a violent protest because they are firing at us. We are here to demand that the truth about the election is upheld,&#8221; said protester Vladimir Manhique, a 32-year-old car mechanic.



&#8220;This is a way to demonstrate that enough is enough. This regime must fall,&#8221; he said.



Several hundred people took part in the protest, with some burning red Frelimo flags in the street and throwing rocks.



Mozambican police have used live ammunition at political protests in the past, including last year, when they defended the use of force as necessary to suppress violence.



Independent presidential candidate Venancio Mondlane said that a national strike on Monday had been well observed and told the protesters to go home after the clashes with police.



Many businesses were closed in Maputo and downtown streets were quiet.



(Reporting by Manuel Mucari, Siphiwe Sibeko, Siyabonga Sishi; Additional reporting and writing by Nellie Peyton; Editing by Ros Russell and Alison Williams)

Nationwide strike in Mozambique

Mozambique police clash with opposition protesters after disputed election

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="502" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QZUAQ2INZBKLHG5LACEZIIRYGE-820x502.jpg" alt="" class="wp-image-544761" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QZUAQ2INZBKLHG5LACEZIIRYGE-820x502.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QZUAQ2INZBKLHG5LACEZIIRYGE-300x184.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QZUAQ2INZBKLHG5LACEZIIRYGE-147x90.jpg 147w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QZUAQ2INZBKLHG5LACEZIIRYGE-768x470.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QZUAQ2INZBKLHG5LACEZIIRYGE-1536x940.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QZUAQ2INZBKLHG5LACEZIIRYGE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILED PHOTO: A 3D printed natural gas pipeline is placed in front of displayed ExxonMobil logo in this illustration taken February 8, 2022. REUTERS/Dado Ruvic/Illustration</figcaption></figure>



ABUJA, Oct 21 (Reuters) &#8211; Nigeria has approved the sale of Exxon Mobil Corp&#8217;s onshore assets to Seplat Energy, the chief executive officer of the country&#8217;s upstream regulator said on Monday, more than two years after the $1.28 billion deal was first agreed.



The sale had been under scrutiny as it awaited regulatory approval since it was first announced in February 2022.



President Bola Tinubu said on Oct. 1 the deal would receive ministerial approval in a matter of days after getting clearance from the regulator.



Nigerian Upstream Petroleum Regulatory Commission (NUPRC) CEO Gbenga Komolafe said on Monday at an event in the capital Abuja that the ministerial approval had been granted.



Under the deal, Seplat will own 40% of four oil mining leases and associated infrastructure, including the Qua Iboe export terminal, and 51% of Bonny River natural gas liquids recovery plant previously owned by Mobil Producing Nigeria Unlimited, Exxon&#8217;s local unit.



Oil majors operating in Nigeria &#8211; Africa&#8217;s largest oil exporter &#8211; have been retreating from onshore operations hampered by theft and sabotage, opting to focus future investments on newer and more lucrative deep offshore fields.



In July the NUPRC approved the sale of onshore assets by Eni&#8217;s local unit to Oando and another from Equinor to new entrant Project Odinmim.



The regulator offered in May faster approvals for pending asset sales by oil majors if they took responsibility for oil spills and compensated impacted communities rather than wait for authorities to apportion liability.



(Reporting by Isaac Anyaogu, Ope Adetayo and Camillus Eboh; Writing by Isaac Anyaogu and Bhargav Acharya;Editing by Alexander Winning and Emelia Sithole-Matarise)

Illustration shows ExxonMobil logo and natural gas pipeline

Nigeria approves Exxon-Seplat deal after more than two years

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu-820x461.jpeg" alt="" class="wp-image-544730" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A family shops for Halloween candy at a Walmart Supercenter on October 16, 2024 in Austin, Texas.  Brandon Bell | Getty Images</figcaption></figure>



Just because the Federal Reserve is nearing its inflation goal doesn’t mean the problem is solved, as the high price of goods and services across the U.S. economy continues to pose a burden for individuals, businesses and policymakers.



Recent price reports on goods and services, despite being a bit stronger than expected, indicate that the rate of inflation over the past year is getting close to the central bank’s 2% target.



In fact, Goldman Sachs recently estimated that when the Bureau of Economic Analysis later this month releases its figures on the Fed’s favorite price measure, the inflation rate could be close enough to get rounded down to that 2% level.



But inflation is a mosaic. It can’t be captured fully by any individual yardstick, and by many metrics is still well above where most Americans, and in fact some Fed officials, feel comfortable.



Sounding like many of her colleagues, San Francisco Fed President Mary Daly last Tuesday touted the easing of inflation pressures but noted that the Fed isn’t declaring victory nor is it eager to rest on its laurels.



“Continued progress towards our goals is not guaranteed, so we must stay vigilant and intentional,” she told a group gathered at the New York University Stern School of Business.



<h2 class="wp-block-heading" id="h-inflation-is-not-dead">Inflation is not dead</h2>



Daly began her talk with an anecdote of a recent encounter she had while walking near her home. A young man pushing a stroller and walking a dog called out, “President Daly, are you declaring victory?” She assured him she was not waving any banners when it comes to inflation.



But the conversation encapsulated a dilemma for the Fed: If inflation is on the run, why are interest rates still so high? Conversely, if inflation still hasn’t been whipped — those who were around in the 1970s might remember the “Whip Inflation Now” buttons — why is the Fed cutting at all?



In Daly’s eyes, the Fed’s half percentage point reduction in September was an attempt at “right-sizing” policy, to bring the current rate climate in line with inflation that is well off its peak of mid-2022 at the same time as there are signs the labor market is softening.



As evidenced by the young man’s question, convincing people that inflation is easing is a tough sell.



When it comes to inflation, there are two things to remember: the rate of inflation, which is the 12-month view that garners headlines, and the cumulative effects that a more than three-year run has had on the economy.



Looking at the 12-month rate provides only a limited view.



The annual rate of CPI inflation was 2.4% in September, a vast improvement over the 9.1% top in June 2022. The CPI measure draws the bulk of public focus but is secondary to the Fed, which prefers the personal consumption expenditures price index from the Commerce Department. Taking the inputs from the CPI that feed into the PCE measure led Goldman to its conclusion that the latter measure is just a few hundredths of a percentage point from 2%.



Inflation first passed the Fed’s 2% objective in March 2021 and for months was dismissed by Fed officials as the “transitory” product of pandemic-specific factors that would soon recede. Fed Chair Jerome Powell, in his annual policy speech at the Jackson Hole, Wyoming summit this August, joked about “the good ship Transitory” and all the passengers it had in the early days of the inflation run-up.



Obviously, inflation wasn’t transitory, and the all-items CPI reading is up 18.8% since then. Food inflation has surged 22%. Eggs are up 87%, auto insurance has soared almost 47% and gasoline, though on a downward trajectory these days, is still up 16% from then. And, of course, there’s housing: The median home price has jumped 16% since Q1 of 2021 and 30% from the beginning of the pandemic-fueled buying frenzy.



Finally, while some broad measures of inflation such as CPI and PCE are pulling back, others show stubbornness.



For instance, the Atlanta Fed’s measure of “sticky price” inflation — think rent, insurance and medical care — was still running at a 4% rate in September even as “flexible CPI,” which includes food, energy and vehicle costs, was in outright deflation at -2.1%. That means that prices that don’t change a lot are still high, while those that do, in this particular case gasoline, are falling but could turn the other way.



The sticky-price measure also brings up another important point: “Core” inflation that excludes food and energy prices, which fluctuate more than other items, was still at 3.3% in September by the CPI measure and 2.7% in August as gauged by the PCE index.



While Fed officials lately have been talking more about headline numbers, historically they’ve considered core a better measure of long-run trends. That makes the inflation data even more troublesome.



<h2 class="wp-block-heading"><a></a>Borrowing to pay higher prices</h2>



Prior to the 2021 spike, American consumers had grown accustomed to negligible inflation. Even so, during the current run, they have continued to spend, spend and spend some more despite all the grumbling about the soaring cost of living.



In the second quarter, consumer spending equaled close to $20 trillion at an annualized pace, according to the Bureau of Economic Analysis. In September, retail sales increased a larger-than-expected 0.4%, with the group that feeds directly into gross domestic product calculations up 0.7%. However, year-over-year spending increased just 1.7%, below the 2.4% CPI inflation rate.



A growing portion of spending has come through IOUs of various forms.



Household debt totaled $20.2 trillion through the second quarter of this year, up $3.25 trillion, or 19%, from when inflation started spiking in Q1 of 2021, according to Federal Reserve data. In the second quarter of this year, household debt rose 3.2%, the biggest increase since Q3 of 2022.



So far, the rising debt hasn’t proved to be a major problem, but it’s getting there.



The current debt delinquency rate is at 2.74%, the highest in nearly 12 years though still slightly below the long-term average of around 3% in Fed data going back to 1987. However, a recent New York Fed survey showed that the perceived probability of missing a minimum debt payment over the next three months jumped to 14.2% of respondents, the highest level since April 2020.



And it’s not just consumers who are racking up credit.



Small business credit card usage has continued to tick higher, up more than 20% compared to pre-pandemic levels and nearing the highest in a decade, according to Bank of America. The bank’s economists expect the pressure could ease as the Fed lowers interest rates, though the magnitude of the cuts could come into question if inflation proves sticky.



In fact, the one bright spot of the small business story relative to credit balances is that they actually haven’t kept up with the 23% inflation increase going back to 2019, according to BofA.



Broadly speaking, though, sentiment is downbeat at small firms. The September survey from the National Federation of Independent Business showed that 23% of respondents still see inflation as their main problem, again the top issue for members.



<h2 class="wp-block-heading"><a></a>The Fed’s choice</h2>



Amid the swirling currents of the good news/bad news inflation picture, the Fed has an important decision to make at its Nov. 6-7 policy meeting.



Since policymakers in September voted to lower their baseline interest rate by half a percentage point, or 50 basis points, markets have acted curiously. Rather than price in lower rates ahead, they’ve begun to indicate a higher trajectory.



The rate on a 30-year fixed mortgage, for instance, has climbed about 40 basis points since the cut, according to Freddie Mac. The 10-year Treasury yield has moved up by a similar amount, and the 5-year breakeven rate, a bond market inflation gauge that measures the 5-year government note against the Treasury Inflation Protected Security of the same duration, has moved up about a quarter point and recently was at its highest level since early July.



SMBC Nikko Securities has been a lone voice on Wall Street encouraging the Fed to take a break from cuts until it can gain greater clarity about the current situation. The firm’s position has been that with stock market prices eclipsing new records as the Fed has shifted into easing mode, softening financial conditions threaten to push inflation back up. (Atlanta Fed President Raphael Bostic recently indicated that a November pause is a possibility he’s considering.)



“For Fed policymakers, lower interest rates are likely to further ease financial conditions, thereby boosting the wealth effect through higher equity prices. Meanwhile, a fraught inflationary backdrop should persist,” SMBC chief economist Joseph LaVorgna, who was a senior economist in the Donald Trump White House, wrote in a note Friday.



That leaves folks like the young man who Daly, the San Francisco Fed president, encountered uneasy about the future and hinting whether the Fed perhaps is making a policy mistake.



“I think we can move towards [a world] where people have time to catch up and then get ahead,” Daly said during her talk in New York. “That is, I told the young father on the sidewalk, my version of victory, and that’s when I will consider the job done.”

108048712-1729110726420-gettyimages-2178767848-dsc_1378_dxqewiuu

Here’s why inflation may look like it’s easing but is still a huge problem

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg" alt="" class="wp-image-422955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, Oct 21 (Reuters) &#8211; The Ugandan shilling was broadly stable on Monday, with a small bias on the firming side as some inflows of hard currency from charities and remittances provided support, traders said.



At 0828 GMT, commercial banks quoted the shilling at 3,760/3,770, compared to Friday&#8217;s close of 3,662/3,672.



(Reporting by Elias Biryabarema; Editing by Bhargav Acharya)

GettyImages-924883576-1

Ugandan shilling broadly stable on healthy flows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2.jpg" alt="" class="wp-image-524623" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Oct 21 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Monday.



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



Foreigners&#8217; trading in South African bonds and equities



South African Treasury bill auction



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



South Africa&#8217;s rand firmed against a weaker dollar on Friday, ahead of a domestic inflation reading next week which could provide clues on the central bank&#8217;s rate-cutting path.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index last traded about 0.5% higher.



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



Asia shares dipped in and out of positive territory on Monday, under pressure from weakness in Hong Kong stocks, but bitcoin scaled a three-month peak as &#8220;Trump trades&#8221; continued to ramp up.



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



The Dow Jones Industrial Average and S&amp;P 500 chalked up record closing highs on Friday, with the Nasdaq also in positive territory, as markets were boosted by an earnings-driven jump in Netflix shares and broader gains across technology stocks.



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



Gold rose to a fresh high on Monday, extending its blazing rally amid uncertainties surrounding the U.S. election, simmering Middle East tensions and rate cuts by major central banks, while silver scaled a near 12-year peak.



&#8211; &#8211; &#8211; &#8211;



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



<h2 class="wp-block-heading" id="h-business-day">BUSINESS DAY</h2>



&#8211; Economists warn Eskom tariffs should be a red flag



&#8211; Budget cuts leave health department unable to fill critical posts



<h2 class="wp-block-heading" id="h-fin-24">FIN 24</h2>



&#8211; Standard Bank hunts for SA sales as it leverages Liberty&#8217;s impressive data, 2 000 advisors



&#8211; SA competition watchdog says &#8216;all tools&#8217; should be considered to deal with Temu, Shein



(Compiled by Bhargav Acharya)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Oct 21

<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, Oct 21 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Monday.



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



Asia shares dipped in and out of positive territory on Monday, under pressure from weakness in Chinese stocks, but bitcoin scaled a three-month peak as &#8220;Trump trades&#8221; continued to ramp up. 



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



Oil prices steadied in early trading on Monday, following a more than 7% drop last week on worries about demand in China, the world&#8217;s top oil importer, and an easing of concerns about potential supply disruptions in the Middle East. 



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



South Africa&#8217;s rand firmed against a weaker dollar on Friday, ahead of a domestic inflation reading next week which could provide clues on the central bank&#8217;s rate-cutting path. 



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



The Kenyan shilling was unchanged against the dollar on Friday and will likely remain at the same levels in the next week, one foreign exchange trader said. 



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



Kenyan President William Ruto chose Interior Minister Kithure Kindiki as his new deputy on Friday, but a court blocked his appointment until it hears a case next week challenging the impeachment of Kindiki&#8217;s predecessor.



<h2 class="wp-block-heading" id="h-tanzania-electricity">TANZANIA ELECTRICITY</h2>



Tanzania is building a grid interconnector with Zambia to help assist in mitigating a drought-driven power crisis, Tanzania&#8217;s deputy prime minister said at the Singapore International Energy Week conference on Monday. 



<h2 class="wp-block-heading" id="h-ethiopia-imf">ETHIOPIA-IMF</h2>



The executive board of the International Monetary Fund approved the first review of Ethiopia&#8217;s $3.4 billion lending programme, the fund said on Friday, paving the way for a $340.7 million disbursement. 



((Compiled by Nairobi Newsroom))

African Markets – Factors to watch on Oct 21

In September 2024, President Cyril Ramaphosa, led a State Visit to China. The visit was aimed at strengthening the long-standing partnership between South Africa and China and coincided with the Forum on China-Africa Cooperation (FOCAC) 2024 Summit.



Established in 2000 and consisting of 53 African countries, FOCAC is a key platform for fostering collaboration and cooperation between African countries and China in areas such as trade, investment, infrastructure, and development. It also extends to address global issues such as the reform of international governance, peace, and security, all of which is done through a consultative process that aims to promote cooperation between China and Africa.



Specific to 2024, the FOCAC Summit resulted in the signing of several bilateral agreements covering areas such as industrialization, trade, technology, and agricultural modernization.



<h2 class="wp-block-heading" id="h-manufacturing-and-industrialization">Manufacturing and Industrialization</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="580" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-820x580.jpg" alt="" class="wp-image-544673" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-820x580.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-300x212.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-127x90.jpg 127w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-768x543.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD.jpg 1376w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Worker in an industrial site.</figcaption></figure>



One of the core themes of FOCAC 2024 was industrialization, a key priority for African nations as they seek to transform their economies from resource-dependent to value-added industries. Through FOCAC, China has been a crucial partner in supporting Africa’s industrialization agenda, providing investment, technology, and infrastructure to facilitate the growth of sectors such as manufacturing, energy, and agriculture.



China’s investments in Africa’s industrial sector align with the goals of the African Union’s Agenda 2063, which emphasizes inclusive economic growth and industrial transformation as drivers of development.



In the last two decades, China’s FDI into Africa has increased, peaking at $5b in 2022. This amount, which represents about 4.4% of the Continent’s FDI has mainly been focused on manufacturing – a key driver to Africa’s industrialization agenda (Institute for Global Dialogue,2023)



South Africa has benefitted from this FDI, with the country being a major recipient of Chinese investment. It is, however, understood that this FDI has mainly been in the primary sectors of natural resources.&nbsp; FOCAC 2024 highlighted the importance of changing this with more finished goods being exported to China.



<h2 class="wp-block-heading" id="h-balancing-south-africa-china-s-trade">Balancing South Africa-China’s Trade</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="580" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-820x580.png" alt="" class="wp-image-544706" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-820x580.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-300x212.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-127x90.png 127w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-768x543.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD.png 1414w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An artist&#8217;s impression of a hydrogen energy tanker.</figcaption></figure>



Whilst trade between China and Africa has grown significantly (increasing from $11.67 billion in 2000 to $257.67 billion by 2022), it is understood and agreed that the imbalance in trade must be addressed.



Specific to South Africa, during 2022, the country exported $23.4 billion worth of products to China, while China’s exports to South Africa amounted to $23.5 billion. The primary exports from South Africa to China were natural resources, including gold, which accounted for $8.85 billion, followed by diamonds at $3.36 billion and platinum at $1.83 billion. In contrast, China’s exports to South Africa were predominantly manufactured goods, featuring broadcasting equipment valued at $1.78 billion, computers at $1.04 billion, and electric batteries at $777 million (South African Revenue Service, 2023).



According to a joint statement released by the governments of South Africa and China during FOCAC 2024, the two countries agreed to elevate their partnership into a comprehensive strategic cooperative relationship focused on balancing trade, a key input into industrialization, technological innovation, and sustainable growth. In respect of the latter, South Africa’s investment opportunities in the renewable energy, green hydrogen as well as energy storage, all of which have been identified as sunrise sectors with the potential to massively contribute to South Africa’s GDP and job creation capabilities were highlighted as areas of investment by the South African government.



This is because of China’s proven track record in these areas; presently China is the largest producer and consumer of hydrogen.&nbsp; It is also at the forefront of electric vehicles and battery production with its electric vehicles already making headway in Europe. This fast-evolving sector provides an opportunity not just for South Africa, but the Continent as a whole, given the natural endowments found in Africa and their essential input into the production of fuel cell and electric vehicles as well as green hydrogen. In order for this opportunity to be realized and more importantly, for the opportunity to translate into the growth prospects envisaged for the Continent and the country, a market such as China is key in supporting South Africa’s ambition to realize its green technology capabilities. Without a doubt, forums such as the FOCAC are of benefit to South Africa in accessing the Chinese market, not just from an investment perspective but from a consumption market as well.



<h2 class="wp-block-heading" id="h-re-drawing-and-leveling-the-playing-field-2025-2027-focac-plan">Re-drawing and Leveling the Playing Field: -2025-2027 FOCAC Plan</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="580" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-1-820x580.png" alt="" class="wp-image-544707" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-1-820x580.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-1-300x212.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-1-127x90.png 127w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-1-768x543.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GIDD-1.png 1414w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China and South Africa flags</figcaption></figure>



The 2024 FOCAC Plan was shortened from six years to three years. This is in support of the desire to accelerate modernization and industrialization in Africa as well as the objective to reduce the trade imbalance between China and the Continent.



To also ensure effective implementation of the desired co-operation between China and Africa, 10 key measures or areas of co-operation have been defined. All of the areas are beneficial and can if implemented effectively, contribute to the Continent’s sustainable growth.



Amongst others, the 2025-2027 FOCAC Plan aims to create research centers across Africa to enhance training of African Leaders. The Plan has also set its goals on eliminating tariffs for products from least developed countries, helping African countries to expand their agricultural exports and digital trade platforms. The establishment of industrial parks across 5 regions in Africa is also a target, as is infrastructure development, health care improvement, rural revitalization, security, and green development. To support all of this, China has pledged some $49b in financial support to be accessed in different ways, including credit lines or development assistance.



<h2 class="wp-block-heading" id="h-positioning-south-africa-to-benefit-from-focac">Positioning South Africa to benefit from FOCAC</h2>



During the State Visit undertaken alongside the 2024 FOCAC Summit, President Cyril Ramaphosa called for a narrowing of the trade deficit with China. For South Africa to enhance its trade arrangements with China as well as its access to set-aside FDI, it is argued that the country’s SEZ programme be integrated into priority trade and development areas identified for the country.



Leveraging the SEZ programme will ensure that a comparative advantage for FDI coming through from China can access the SEZ incentive framework, leading to increased investment.



The OR Tambo International Airport SEZ is well positioned to play a central role in this, in lieu of its competitive location next to Africa’s largest and busiest Airport and its development trajectory wherein it has already identified and packaged for investment uptake, opportunities in sectors such as the pharmaceutical and medical sectors as well as the green economy.&nbsp;



The SEZ also has infrastructure development opportunities that support regional development where the SEZ is located, ensuring modernization of the OR Tambo International Airport Economic Node and its continued position as a world-class business location with accessibility and connectivity to different parts of the world.

GIDD

Unpacking FOCAC and the ideal positioning of the OR Tambo SEZ for enhanced FDI inflows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107077973-1655689250819-gettyimages-1402870855-vcg111387492036-1-820x461.jpeg" alt="" class="wp-image-544690" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107077973-1655689250819-gettyimages-1402870855-vcg111387492036-1-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107077973-1655689250819-gettyimages-1402870855-vcg111387492036-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107077973-1655689250819-gettyimages-1402870855-vcg111387492036-1-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107077973-1655689250819-gettyimages-1402870855-vcg111387492036-1-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107077973-1655689250819-gettyimages-1402870855-vcg111387492036-1-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107077973-1655689250819-gettyimages-1402870855-vcg111387492036-1.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China’s central bank supplied 14-day cash to its banking system for the first time in months on Monday and at a lower interest rate, signaling its intent to further ease monetary conditions. Jiang Qiming | China News Service | Getty Images</figcaption></figure>



China on Monday lowered its main benchmark lending rates by 25 basis points at the monthly fixing.



The one-year loan prime rate (LPR) has been cut to 3.1%, while the five-year LPR has been trimmed to 3.6%, the People’s Bank of China (PBOC) said.



The one-year LPR influences corporate loans and most household loans in China, while the five-year LPR serves as a benchmark for mortgage rates.



The move was expected. China’s central bank governor Pan Gongsheng had indicated on Friday during a forum held in Beijing that the loan prime benchmark rates would be lowered by 20 to 25 basis points.



During the forum, Pan also said that the amount of cash that banks need to have on hand, also known as the reserve requirement ratio or RRR, could be lowered by another 25 to 50 basis points by the end of the year, depending on the liquidity situation.



The seven-day reverse repurchase rate will be cut by 20 basis points, while the medium-term lending facility rate will be lowered by 30 basis points, Pan also highlighted.&nbsp;



While the loan prime rate cuts were expected, it does confirm that monetary stimulus is at least “occurring on a significant basis in China,” said Shane Oliver, head of investment strategy and chief economist at AMP. However, he noted that the cut alone is insufficient to lift the country’s economy, reiterating growing calls for more fiscal stimulus.



“The cost of money, the supply of money, is not the real issue in China. The real issue is a lack of demand, and that’s why I think fiscal stimulus is so important,” he added.



Despite recent cuts, the real interest rate in China is still “too high,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management. “I expect more rate cuts next year as the Fed rate declines.”



Last month, China’s central bank trimmed its reserve requirement ratio 50 basis points. The move came as the PBOC released a blitz of support measures aimed at shoring up the world’s second largest economy, which is facing a prolonged property crisis and weak consumer sentiment.



China surprised the markets by shaving its major short and long term lending rates in July.



Last week, China reported slightly better than expected third-quarter GDP growth of 4.6% year-on-year. Additional data released on Friday, including retail sales and industrial production for September, had also beat expectations, a hopeful sign for the country’s flagging economy.



—CNBC’s Evelyn Cheng contributed to this report.

107077973-1655689250819-gettyimages-1402870855-vcg111387492036

China cuts benchmark lending rates by 25 basis points

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="600" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Professor-Kingsley-Moghalu-Inaugural-President-of-the-African-School-of-Governance-ASG-1-820x600.jpg" alt="" class="wp-image-543612" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Professor-Kingsley-Moghalu-Inaugural-President-of-the-African-School-of-Governance-ASG-1-820x600.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Professor-Kingsley-Moghalu-Inaugural-President-of-the-African-School-of-Governance-ASG-1-300x219.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Professor-Kingsley-Moghalu-Inaugural-President-of-the-African-School-of-Governance-ASG-1-123x90.jpg 123w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Professor-Kingsley-Moghalu-Inaugural-President-of-the-African-School-of-Governance-ASG-1-768x562.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Professor-Kingsley-Moghalu-Inaugural-President-of-the-African-School-of-Governance-ASG-1.jpg 1337w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Professor Kingsley Moghalu &#8211; President of the African School of Governance</figcaption></figure>



Kigali, Rwanda, 21st October 2024 – Today, the African School of Governance Foundation (ASGF) announced the establishment of the African School of Governance (ASG) graduate institution designed to offer world-class public policy education, research, and engagement programs. Prominent African leaders have come together in this landmark step, as the initiative is set to transform the continent’s leadership landscape by meeting the diverse needs of leaders across Africa.



The ASG aims to address the continent&#8217;s pressing governance challenges by equipping emerging leaders with the mindsets, skills and knowledge required for effective leadership in Africa&#8217;s future. The initiative brings together visionaries committed to creating a sustainable governance model rooted in African realities.



<h2 class="wp-block-heading" id="h-a-collective-leadership-vision">A Collective Leadership Vision</h2>



The ASG initiative is founded by H.E. Paul Kagame, President of Rwanda, H.E. Hailemariam Desalegn, former Prime Minister of Ethiopia (both co-founders of the ASG Foundation) in consultation with other African leaders, academicians, and philanthropists dedicated to improving governance across the continent.



ASG is supported by the Mastercard Foundation as part of its Young Africa Works strategy, which aims to enable 30 million young Africans, 70 percent of whom are women, to access dignified and fulfilling work opportunities by 2030.



ASG will be led by esteemed independent governing board members, chaired by Makhtar Diop, Managing Director of the International Finance Corporation (IFC) and former Minister of Finance and Economy of Senegal, and including Donald Kaberuka, former President of the African Development Bank, Hajer Gueldich, Professor at the University of Carthage, Kishore Mahbubani, former Dean of the Lee Kuan Yew School of Public Policy at the National University of Singapore, and Francis Gatare, CEO of the Rwanda Development Board.



The ASG Foundation has appointed Professor Kingsley Moghalu, former Deputy Governor of the Central Bank of Nigeria and a distinguished scholar and academic, to be the inaugural President of ASG. The collective vision of ASG’s leadership is to create an institution that offers world-class education in governance and public policy while promoting home-grown solutions to Africa’s unique challenges and opportunities.



Speaking on the launch, H.E. Hailemariam Desalegn commented: “The time is ripe for an institution rooted in Africa’s needs and aspirations. The African School of Governance will be a hub for nurturing purpose-driven leaders equipped to tackle the continent’s greatest challenges and opportunities, combining Africa’s uniqueness with international best practices. This is not just an educational institution, but a movement towards sustainable African leadership.”



<h2 class="wp-block-heading" id="h-tackling-africa-s-development-and-governance-challenges">Tackling Africa&#8217;s Development and Governance Challenges</h2>



Africa’s rapid economic growth, increasing global influence, and evolving governance structures present unprecedented opportunities and challenges. From post-pandemic recovery to climate adaptation, the continent&#8217;s policymakers face complex and urgent issues that require skilled leadership. ASG aims to meet this critical need, by developing current and future leaders who can address these challenges through a shift in leadership mindsets, governance, and sustainable development to drive long-term, meaningful change across the continent.



<h2 class="wp-block-heading" id="h-academic-excellence-and-tailored-programs">Academic Excellence and Tailored Programs</h2>



ASG will offer a comprehensive suite of academic programs designed to meet governance, leadership, and policy deficit across Africa. These include the Master of Public Administration (MPA) and the Executive Master of Public Administration (EMPA) programs, which are tailored to mid-career professionals and senior executives, respectively. ASG will also provide specialized Executive Courses aimed at enhancing specific leadership skills for professionals. Additionally, the Young Leaders Program (YLP) and Senior Leadership Fellowship (SLF) will cater for high-potential undergraduates and seasoned professionals nearing the end of their careers, ensuring that ASG supports leadership development at every stage.



ASG’s curriculum will be distinguished by integrating African historical, political, and socio-economic contexts. By grounding students in African realities, the institution will equip diverse leaders to navigate the continent’s complex governance challenges while drawing from global best practices.



<h2 class="wp-block-heading" id="h-innovative-research-and-policy-engagement">Innovative Research and Policy Engagement</h2>



In addition to its educational offerings, ASG will play a critical role in advancing governance through its dedicated research centres. These include the Centre for Home-Grown Innovations in Policy and Governance, the Centre for African History and Leadership, the Centre for Trade and Regional Integration, and the Centre for Technology and Effective Delivery. These research hubs will focus on generating evidence-based solutions tailored to African governance challenges, helping policymakers design and implement effective policies and strategies.



ASG’s commitment to policy engagement is equally robust, with plans to actively engage with governments, civil society, and private-sector stakeholders. Through policy labs, incubators, and collaborative partnerships, ASG will translate its research into actionable policy solutions that promote good governance and sustainable development across the continent.



<h2 class="wp-block-heading" id="h-leadership-and-governance-structure">Leadership and Governance Structure</h2>



As the inaugural President of ASG, Professor Kingsley Moghalu, a globally recognised leader in public policy and governance, will steer the institution towards its ambitious goals.



Professor Moghalu, a former Deputy Governor of the Central Bank of Nigeria, has held senior positions in the United Nations system for 17 years and taught at prestigious institutions such as Harvard, Oxford, and The Fletcher School at Tufts University. He is also the author of several books, including the critically acclaimed Emerging Africa: How the Global Economy’s ‘Last Frontier’ Can Prosper and Matter.



Makhtar Diop, Managing Director of the IFC and Chair of ASG’s Board, said: “We are excited to welcome Kingsley Moghalu as President of the African School of Governance. His sterling track record of leadership in international and national policymaking institutions, academia, and his thought leadership influence, will help make ASG a transformative graduate school and develop a new generation of purpose-driven leaders with the skills and mindsets to help Africa address the challenges of the 21st Century.”



Professor Moghalu will be responsible for steering and shaping ASG’s academic vision, delivering learning programs that reflect the complex governance challenges facing Africa today. Under the guidance of the Governing Board, he will focus on recruiting top-tier African faculty, fostering academic excellence, and positioning ASG as a hub for intellectual and policy innovation.



“The establishment of ASG is a powerful expression of a clear vision on the part of the founding leaders,” Prof. Moghalu said in response to his appointment. “I share this vision of a transformed Africa driven by competent leadership and governance, and I am honoured to have been tasked with leading ASG’s critical contribution to making that vision a reality.”



<h2 class="wp-block-heading" id="h-strategic-partnerships">Strategic Partnerships</h2>



ASG is supported by the ASG Foundation, a not-for-profit foundation, that exists to help mobilize funding and manage its endowments, as well as give strategic guidance to the institution and support related initiatives for the development of African leaders.



The establishment of ASG is supported by strong strategic partnerships with other world-class institutions, including the Lee Kuan Yew School of Public Policy at the National University of Singapore, and the Mastercard Foundation.



<h2 class="wp-block-heading" id="h-a-pan-african-initiative-with-global-reach">A Pan-African Initiative with Global Reach</h2>



Headquartered in Kigali, Rwanda, ASG is set to become a Pan-African institution with a global influence. Its mission is to build leadership capacity that transcends borders, ensuring that African voices are not only heard but lead the charge in global governance discussions.



ASG’s partnership with institutions such as the Lee Kuan Yew School of Public Policy at the National University of Singapore further reinforces its commitment to providing a world-class education that draws from both African and international expertise.



This announcement marks a significant milestone in Africa’s governance journey. Through the collective efforts of its founders and partners, the institution will help to nurture the leaders that Africa needs to tackle the challenges and opportunities of the 21st century.

Professor Kingsley Moghalu, Inaugural President of the African School of Governance (ASG) 1

African Leaders Launch the African School of Governance (ASG) Initiative

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-820x547.jpg" alt="" class="wp-image-419241" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1242420790-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Electricity pylon is seen near from the Tihange Nuclear Power Station on August 10, 2022, in Tihange, Belgium. As the European Union prepares for the drastic reduction of Russian gas imports, some users are concerned about the risk of heating and electricity cuts next winter. (Photo by Thierry Monasse/Getty Images)</figcaption></figure>



SINGAPORE, Oct 21 (Reuters) &#8211; Tanzania is building a grid interconnector with Zambia to help assist in mitigating a drought-driven power crisis, Tanzania&#8217;s deputy prime minister said at the Singapore International Energy Week conference on Monday.



&#8220;We have some interconnectors with our neighbours, Rwanda, Burundi, Kenya and now we are pulling up an interconnector with Zambia, which will help us to assist our neighbour in Zambia who is facing a deadly drought,&#8221; said Doto Biteko, who is also the energy minister.



&#8220;Tanzania being a member of the Eastern African Power Pool &#8230; we have a bigger market where whenever we have access to electricity, we can sell to our neighbouring countries.&#8221;



The development of the grid interconnector will take 36 months, with work having begun last month, he&nbsp;added&nbsp;on the sidelines of the conference.



Kenya, Tanzania and Zambia said in 2014 that they will spend $1.4 billion to link their power grids by 2018 and create a regional power pool for trading electricity.



On the $42 billion development of Tanzania LNG, a liquefied natural gas export plant, Biteko said the government is in negotiations with the project&#8217;s partners and operators to finalise the host government agreement, but did not give a timeline for when negotiations will be completed.



Tanzania LNG was delayed by proposed government changes to a financial agreement reached last year. A government spokesperson said the proposed amendment to the Host Government Agreement intends to ensure that both sides benefit fairly in the whole deal.



Equinor and Shell are joint operators while Exxon Mobil, Pavilion Energy, Medco Energi and Tanzania&#8217;s national oil company TPDC are partners.



(Reporting by Emily Chow, Sudarshan Varadhan and Trixie Yap; Editing by Sonali Paul and Stephen Coates)

Tihange Nuclear Power Station

Tanzania building grid interconnector with Zambia to help mitigate power crisis

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African football paid out $50-million settlement over marketing rights

Russia pushes ‘new world order’ agenda as it hosts beefed-up BRICS summit

African Markets – Factors to watch on Oct 22

‘New bullish phase’? As gold hits another high, analysts say more records are in sight

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Mozambique police clash with opposition protesters after disputed election

Nigeria approves Exxon-Seplat deal after more than two years

Here’s why inflation may look like it’s easing but is still a huge problem

Ugandan shilling broadly stable on healthy flows

South African Markets – Factors to watch on Oct 21

African Markets – Factors to watch on Oct 21

Unpacking FOCAC and the ideal positioning of the OR Tambo SEZ for enhanced FDI inflows

China cuts benchmark lending rates by 25 basis points

African Leaders Launch the African School of Governance (ASG) Initiative

Tanzania building grid interconnector with Zambia to help mitigate power crisis

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