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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="410" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104863-1740053249386-gettyimages-2192627338-vcg111540435779-820x410.jpeg" alt="" class="wp-image-589024" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104863-1740053249386-gettyimages-2192627338-vcg111540435779-820x410.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104863-1740053249386-gettyimages-2192627338-vcg111540435779-300x150.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104863-1740053249386-gettyimages-2192627338-vcg111540435779-160x80.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104863-1740053249386-gettyimages-2192627338-vcg111540435779-768x384.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104863-1740053249386-gettyimages-2192627338-vcg111540435779.jpeg 884w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">BEIJING, CHINA &#8211; JANUARY 06: The People’s Bank of China (PBOC) building is seen on January 6, 2025 in Beijing, China.  Visual China Group | Getty Images</figcaption></figure>



China could cut its main policy rate as soon as next month following the country’s annual parliamentary meeting, economists told CNBC, after the country’s central bank kept the loan prime rates steady Thursday.



The People’s Bank of China held the 1-year LPR at 3.1%, and the 5-year LPR at 3.6%. The decision was in line with Reuters poll estimates.



The LPRs — normally charged to banks’ best clients — are calculated monthly based on designated commercial banks’ proposed rates submitted to the PBOC. 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.



“Pressure on the banks’ net interest margins and exchange rate amid slower pace of the Federal Reserve’s rate cuts all lead to a stabilization of China’s policy rate,” said Bruce Pang, adjunct associate professor at Chinese University of Hong Kong business school.



Pang, however, expects a 50-basis-point cut to the reserve requirement ratio as soon as next month and anticipates the 7-day reverse repo rate — the country’s main policy rate — to be lowered by 40 to 50 basis points this year.



China’s central bank frequently uses the 7-day reverse repo rate — which controls the amount of liquidity in the banking system — to signal its monetary policy intentions and guide the LPR in the desired direction.



The PBOC has kept its 7-day rate has steady at 1.5% since a cut in September, as the central bank sought to defend the yuan that faces downward pressure amid threats of higher tariffs.



Supporting the yuan, however, comes with risks to the economy, as a weaker yuan could help keep Chinese exports competitively priced abroad, while a stronger currency makes imports more expensive at a time when consumer demand has been weak.



“We still think [the 7-day rate] has a decent chance to be cut in Q1,” Lynn Song, chief economist at ING said, as the real interest rate remains relatively high. He expects PBOC to cut rates after the annual parliamentary meeting in Beijing next month.



“Cutting rates further could help encourage investment and consumption,” Song said, adding that the pressure on yuan had subsided recently, making the case for a rate cut.



China is set to release its 2025 full-year growth target at its parliamentary meeting chaired by Xi Jinping. The event, which typically lasts about a week, is scheduled to kick off on March 5.



The policymakers are likely to keep the official real growth target unchanged at “around 5%” while lowering the consumer inflation target to “around 2%” from “around 3%” last year, according to Goldman Sachs.



The Wall Street bank expects policymakers to reiterate their pro-growth monetary easing pledges at the meeting while committing to stabilizing the yuan in a “reasonable range.”



PBOC Governor Pan Gongsheng said at a conference in Saudi Arabia on Sunday that a stable yuan has been critical to maintaining global financial and economic stability. Pan also reiterated Beijing’s commitment to adopt a proactive fiscal policy and an accommodative monetary policy this year.



Chinese offshore yuan has fallen nearly 2.5% against the greenback since Donald Trump’s election victory in November, after recouping some of the losses in recent weeks. It strengthened 0.20% on Thursday to trade at 7.2673 on the dollar.



<h2 class="wp-block-heading" id="h-spurring-growth-vs-steadying-yuan"><a></a>Spurring growth vs. steadying yuan</h2>



The world’s second-largest economy has been struggling to emerge from a prolonged property crisis and tepid consumer demand. China’s manufacturing activity unexpectedly contracted in January, while services activity weakened, keeping alive calls for more stimulus.



While the PBOC officials said late last year, they would cut banks’ reserve requirement ratio and interest rates at an “appropriate time,” the rate cuts are yet to materialize, as policymakers face more trade tensions with the U.S.



Since the inauguration last month, U.S. President Donald Trump has imposed a 10% tariff on all imports from China, on top of existing tariffs of up to 25%.



However, market concerns over trade tensions are easing, following reports that Trump may strike a wide-ranging deal with China, a team of analysts at DBS Bank said in a note on Thursday.



“Increased hopes of a U.S.-China comprehensive deal may limit any deterioration in RMB sentiment going forward, even as markets await further Trump tariffs,” the bank said.



Constraining PBOC’s easing steps is also the Fed’s slower pace with policy rate cuts. The U.S. Federal Reserve officials agreed they would need to see inflation come down further before lowering interest rates, according to the minutes of their January meeting, released Wednesday.

108104863-1740053249386-gettyimages-2192627338-vcg111540435779

China is likely to cut its benchmark policy rate next month, economists say, after PBOC keeps LPR steady

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



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



Asian shares rose on Friday, reversing Wall Street&#8217;s negative lead as the U.S. exceptionalism narrative continued to lose its shine, while once unloved Chinese stocks found themselves more buyers thanks to optimism over artificial intelligence (AI).



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



Oil prices extended gains on Friday, headed for a weekly increase, as falling inventories of U.S. gasoline and distillate raised expectations of solid demand while concerns over supply disruptions in Russia lent support.



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



South Africa&#8217;s rand strengthened against a weaker dollar on Thursday, as investors digested U.S. data and President Donald Trump&#8217;s tariff plans.



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



Nigeria&#8217;s central bank left its benchmark interest rate unchanged on Thursday after six hikes last year, saying that it was reassured by stability in the foreign exchange market and saw inflation gradually falling.



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



The Kenyan, Nigerian, Ghanaian and Zambian currencies are expected to be broadly stable in the next week to Thursday, while Uganda&#8217;s could come under pressure, traders said.



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



Kenya&#8217;s shilling was stable on Thursday, but traders expect it to weaken soon as importers increase their dollar purchases.



<h2 class="wp-block-heading" id="h-democratic-republic-of-congo-security">DEMOCRATIC REPUBLIC OF CONGO SECURITY</h2>



The United States on Thursday said it was imposing sanctions on a Rwandan government minister and a senior member of an armed group for their alleged role in the conflict in the eastern Democratic Republic of Congo (DRC).



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



France said on Thursday it would keep 80 military personnel in Ivory Coast largely for training purposes, as it handed over control of a military base in the commercial capital amid a scaling back of its forces across West and Central Africa.



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



Ivory Coast&#8217;s cocoa grind fell 0.2% year-on-year in January to 63,225 metric tons, data from exporter association GEPEX showed on Thursday.



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



Ghana&#8217;s government and the labour unions have agreed to increase public servants&#8217; salaries by 10%, they said in a joint statement on Thursday, as the new administration prepares to present its budget next month.



<h2 class="wp-block-heading" id="h-niger-politics">NIGER POLITICS</h2>



A commission in military junta-led Niger has recommended a minimum five-year transition to democratic rule following national discussions, officials said.



(Compiled by Nairobi Newsroom)

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Feb 21

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/6RCXJR3LVNJQPK7SYWKC64O5XY.avif" alt="" class="wp-image-588973"/><figcaption class="wp-element-caption">China&#8217;s Foreign Minister Wang Yi speaks to the press following a meeting of the United Nations Security Council at the U.N. headquarters in New York City, U.S., February 18, 2025. REUTERS/Brendan McDermid/File Photo</figcaption></figure>



BEIJING, Feb 21 (Reuters)&nbsp;&#8211;&nbsp;China came out in support of U.S. President Donald Trump&#8217;s bid to strike a deal with Russia to end the war in Ukraine, at a G20 meeting in South Africa on Thursday, while U.S. allies rallied around Ukrainian President Volodymyr Zelenskiy.



Less than a month into his presidency, Trump has upended U.S. policy on the war, scrapping a campaign to isolate Moscow with a phone call to Russian President Vladimir Putin and talks between senior U.S. and Russian officials that have sidelined Ukraine.



Trump on Wednesday then denounced Zelenskiy as a &#8220;dictator,&#8221; prompting statements of support for the Ukrainian president from G20 members such as Australia, Germany and the United Kingdom.



&#8220;China supports all efforts conducive to peace (in Ukraine), including the recent consensus reached between the United States and Russia,&#8221; Wang Yi told other G20 foreign ministers gathered in Johannesburg, according to a statement from his ministry.



&#8220;China is willing to continue playing a constructive role in the political resolution of the crisis,&#8221; he added.



Wang did not reiterate the point he made at the Munich Security Conference last Friday that all stakeholders in the Russia-Ukraine conflict should participate in any peace talks.



&#8220;China is generally happy to see the easing of relations between the United States and Russia and the shift of the Ukrainian crisis to a political solution, but will pay close attention to the direction of negotiations and the direction of easing of U.S.-Russian relations,&#8221; said Cui Hongjian, head of European Union studies at Beijing Foreign Studies University.



&#8220;If China participates in mediation, it can reduce the risk of the United States using the easing of relations with Russia to harm China&#8217;s interests.&#8221;



He added that Wang Yi&#8217;s previous remark that all stakeholders should be included in talks covers not only Ukraine and Europe, but also China and Global South countries.



Global South countries represent developing, emerging or lower-income nations, mostly in the southern hemisphere.



However, other analysts were sceptical of China&#8217;s substantive involvement beyond rhetorical statements at this stage, given Beijing&#8217;s aversion to taking geopolitical risks.



&#8220;China is happy not to be called on the spot to deliver because they don&#8217;t know what Trump will demand,&#8221; said Alexander Gabuev, director of the Carnegie Russia Eurasia Center.



&#8220;Trump wanted China&#8217;s involvement initially but now he&#8217;s spoken to Putin. He is under the impression that he doesn&#8217;t need China to get a deal with Putin and Putin will give him a perfect and better deal going forward.&#8221;



Wang said China-Russia relations are &#8220;moving towards a higher level and broader dimension&#8221; during a meeting with Russian Foreign Minister Sergey Lavrov on the sidelines of the G20. Both men will meet in Moscow soon for their next talks, Lavrov said earlier on Thursday.



Other analysts believe that China wants to keep a foot in the door of negotiations because it wants to take part in Ukraine&#8217;s reconstruction.



&#8220;China might turn its attention to discussing a Chinese role in eventual reconstruction and peacekeeping &#8211; something that would give Beijing a significantly more vested interest in European security architecture,&#8221; said Ruby Osman, a China expert at the Tony Blair Institute for Global Change.



The Trump administration said on Tuesday it had agreed to hold more talks with Russia on ending the nearly three-year long conflict after a 4-1/2-hour long meeting in Saudi Arabia.



Russia said the talks had been useful, but hardened its demands, notably insisting it would not tolerate the NATO alliance granting membership to Ukraine.



(Reporting by Joe Cash and Laurie Chen; Editing by Sonali Paul and Michael Perry)

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China backs Trump’s Ukraine peace bid at G20 as US allies rally behind Zelenskiy

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<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="473" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QPQQ77FJE5JRTNVTB23SO7K7RM.avif" alt="" class="wp-image-568246"/><figcaption class="wp-element-caption">A view shows Nigeria&#8217;s Central Bank headquarters in Abuja, Nigeria November 22, 2020. Picture taken November 22, 2020. REUTERS/Afolabi Sotunde//File Photo</figcaption></figure>



ABUJA, Feb 20 (Reuters) &#8211; Nigeria&#8217;s central bank held its benchmark lending rate at 27.50%, its governor Olayemi Cardoso said on Thursday.



The decision follows six rate hikes last year totalling&nbsp;875 basis points&nbsp;to try to get inflation under control.



Earlier this week the statistics agency unveiled a much lower annual inflation rate of&nbsp;24.48%&nbsp;in January after a rebasing exercise.



The naira currency&nbsp;has been relatively stable since December, potentially reassuring the central bank.



(Reporting by Elisha Bala-Gbogbo and Chijioke Ohuocha; Additional reporting by Bhargav Acharya in Johannesburg and MacDonald Dzirutwe in Lagos; Editing by Alexander Winning)

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Nigeria’s central bank keeps main interest rate unchanged

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="531" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-820x531.jpg" alt="" class="wp-image-496289" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-820x531.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A building of the Bank of Botswana is seen in the capital Gaborone in Botswana, in this November 26, 2015 file photo. REUTERS/Siphiwe Sibeko</figcaption></figure>



GABORONE, Feb 20 (Reuters) &#8211; Botswana&#8217;s central bank kept its monetary policy rate unchanged for the third meeting in a row at 1.90% in a decision announced on Thursday.



Inflation in the Southern African country quickened to 2.5% year on year in January, from 1.7% a month earlier.



The Bank of Botswana prefers inflation between 3% and 6% in the medium term.



Botswana&#8217;s economy is largely dependent on the export of diamonds, with a sharp downturn in global demand for the precious stone triggering an economic contraction last year.



But the government hopes the economy will rebound this year because of an improvement in the global diamond market and a better performance in other sectors.



(Reporting by Brian Benza; Additional reporting by Bhargav Acharya; Writing by Sfundo Parakozov; Editing by Alexander Winning)

File photo of building of the Bank of Botswana in the capital Gaborone in Botswana

Botswana central bank holds key rate for third consecutive meeting

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1500" height="1000" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/EZPYBC4O4FOVFK4OHFZ6JGQSCM.avif" alt="" class="wp-image-588658"/><figcaption class="wp-element-caption">South African President Cyril Ramaphosa gestures as he delivers his 2025 State of the Nation Address in Cape Town, South Africa, February 6, 2025. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, Feb 20 (Reuters) &#8211; Foreign ministers from the G20 top economies were to meet in South Africa on Thursday and Friday, amid tensions between members over the Ukraine war, trade disputes and with the top U.S. diplomat staying away owing to a feud with the hosts.



The G20 countries, which represent some 85% of global GDP and three quarters of trade, often struggle to see eye to eye, but geopolitical rifts since Russia&#8217;s 2022 Ukraine invasion have rendered it more fractious than ever.



The discord has increased since President Donald Trump took office a month ago and implemented rapid changes in Washington&#8217;s trade and foreign policies.



South Africa holds the rotating presidency of the group and for President Cyril Ramaphosa the first G20 meeting in Africa was an opportunity to get rich nations to heed poorer countries&#8217; concerns &#8211; worsening inequality, inadequate action on climate change, and a financial system that favours investment banks over poor sovereign debtors.



But the United States won&#8217;t be attending: Secretary of State Marco Rubio earlier this month rejected as &#8220;very bad&#8221; the previously agreed agenda of &#8220;diversity, equity and inclusion&#8221;.



Then Trump cut U.S. aid to South Africa in an ideological dispute with the latter&#8217;s efforts to redress historic racial injustices in land ownership &#8211; and over its genocide case against U.S. ally Israel at the International Court of Justice.



The gathering takes place as Trump has upended the U.S. policy of solidarity with Ukraine as he seeks to broker peace in its war with Russia. He has blamed President Volodymyr Zelenskiy for the conflict, and sidelined NATO allies in ending a campaign to isolate Russia.



The U.S. absence is an opportunity for China, which has the world&#8217;s second biggest economy, to expand its influence. Such efforts by Beijing are normally focused on the Global South but China has quickly sought to capitalise on the cracks in the transatlantic alliance.



Its foreign ministry said on Monday that &#8220;healthy and stable&#8221; China-EU relations are needed now more than ever.



(Reporting by Tim Cocks; Additional reporting by Nellie Peyton, Tannur Anders in Johannesburg; Editing by Frances Kerry)

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G20 foreign ministers gather amid tensions over trade, Ukraine

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017. REUTERS/Thomas White/Illustration</figcaption></figure>



JOHANNESBURG, Feb 20 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand firmed slightly in early trade on Thursday, recouping some of the previous session&#8217;s losses as focus shifted from a delay in the national budget to the first meeting of G20 foreign ministers in Johannesburg.



At 0812 GMT, the rand traded at 18.4925 against the dollar, about 0.2% stronger than its previous close.



The local currency slipped on Wednesday after a last-minute postponement of the budget due to disagreements within the country&#8217;s coalition government over a proposal to hike value-added tax (VAT).



President Cyril Ramaphosa said the cabinet would work together to deliver a new budget, which is now scheduled for March 12.



South Africa, which currently has the presidency of the Group of 20 major economies, will host the first meeting of foreign ministers later on Thursday amid tensions with the U.S. over the country&#8217;s land redistribution policy and its genocide case against Israel at the World Court.



G20 finance ministers and central bank governors are due to meet next week in Cape Town.



South Africa&#8217;s benchmark 2030 government bond was slightly stronger, with the yield down 1.5 basis points to 9.165%.



(Reporting by Sfundo Parakozov; Editing by Helen Popper)

Illustration photo of South African rand

South African rand partially recoups losses, with focus on G20 meeting

<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.jpg" alt="" class="wp-image-524583" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Feb 20 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled political event, company announcement, equity and currency market moves may affect South African markets on Thursday.



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



South Africa hosts first G20 foreign ministers&#8217; meeting



<h2 class="wp-block-heading" id="h-companies">COMPANIES</h2>



Gold Fields&#8217; profit jumps, dividend up amid price rally



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



South Africa&#8217;s rand weakened on Wednesday after the national budget was postponed due to disagreements within the coalition government.



On the stock market, the Top-40 index closed down about 0.8%.



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



Asian shares fell sharply on Thursday, tracking choppy trading on Wall Street and a dip in European stocks as U.S. President Donald Trump&#8217;s tariff plans and a cautious stance from Federal Reserve policymakers hurt risk sentiment.



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



U.S. stocks ended modestly higher on Wednesday and the S&amp;P 500 notched its second straight all-time closing high as investors scrutinized the minutes from the Federal Reserve&#8217;s January policy meeting and digested U.S. President Donald Trump&#8217;s tariff plans.



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



Gold held firm near a record high on Thursday, as investors turned to bullion for safety on fears U.S. President Donald Trump&#8217;s tariff plans would stoke inflation and a global trade war.



&#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; Defence department dogged by delays, old systems and outdated laws



&#8211; High drama as GNU rejects Treasury’s proposed VAT hike



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



&#8211; EU puts itself forward as &#8216;reliable, predictable&#8217; partner for South Africa



&#8211; Glencore says South Africa ferrochrome smelters may need government action to survive



(Compiled by Sfundo Parakozov)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on February 20

<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, Feb 20 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.



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



*Nigeria&#8217;s central bank announces its latest lending rate decision.



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



Asian shares fell sharply on Thursday, tracking choppy trading on Wall Street and a dip in European stocks as U.S. President Donald Trump&#8217;s tariff plans and a cautious stance from Federal Reserve policymakers hurt risk sentiment.



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



Oil prices edged lower on Thursday after an industry report showed a build in U.S. crude stockpiles and as tariff concerns weighed on sentiment, falling back from gains made in the previous session on worries over supply disruptions in Russia.



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



South Africa&#8217;s rand weakened on Wednesday after the national budget was postponed due to disagreements within the coalition government.



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



Nigeria has filed a lawsuit seeking to compel cryptocurrency exchange Binance to pay $79.5 billion for economic losses it says were caused by its operations in the country and $2 billion in back taxes, court documents showed on Wednesday.



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



Kenya&#8217;s shilling was little changed against the dollar on Wednesday, data from the London Stock Exchange Group showed.



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



Kenya tourism sector earnings are expected to jump to 650 billion shillings ($5 billion) this year from 452.2 billion shillings last year, Tourism Minister Rebecca Miano said on Wednesday.



<h2 class="wp-block-heading" id="h-democratic-republic-of-congo-security">DEMOCRATIC REPUBLIC OF CONGO SECURITY</h2>



Volleys of gunfire rang out in Democratic Republic of Congo&#8217;s eastern border town of Uvira on Wednesday, local sources said, as clashes broke out among allied forces amid the advance of Rwanda-backed rebels.



<h2 class="wp-block-heading" id="h-rwanda-bond">RWANDA BOND</h2>



Rwanda&#8217;s sole international government bond fell by the biggest margin since August 2022 on Wednesday, as worries over fighting in the neighbouring Democratic Republic of the Congo, where Rwanda backs M23 rebels, intensified.



<h2 class="wp-block-heading" id="h-mali-mining">MALI MINING</h2>



Canadian miner Barrick Gold has signed a new agreement with the Malian government to end an almost two-year-old dispute over its mining assets in the West African country, four people familiar with the developments told Reuters on Wednesday.



(Compiled by Nairobi Newsroom)

African Markets – Factors to watch on Feb 20

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3334" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/YHJLDZP43BMT3MATCRMZFOLZ6Q.avif" alt="" class="wp-image-588585"/><figcaption class="wp-element-caption">U.S. Secretary of the Treasury Scott Bessent speaks, at the White House, in Washington, U.S. February 3, 2025. REUTERS/Elizabeth Frantz/File Photo</figcaption></figure>



MIAMI/BERLIN, Feb 19 (Reuters)&nbsp;&#8211;&nbsp;U.S. Treasury Secretary Scott Bessent&nbsp;said on Wednesday he will&nbsp;skip next week&#8217;s meeting of finance ministers and central bank governors from the Group of 20 major economies in Cape Town, South Africa.



The decision to miss the regular gathering of finance leaders from the world&#8217;s largest economies is highly unusual for a U.S. Treasury secretary, as the U.S. often leads G20 agreements on financial and monetary policy matters.



Bessent said in a post on X that he would not attend the summit due to &#8220;obligations in Washington&#8221;. A senior official would attend in his place, he added.



He said he looked forward to seeing his global counterparts in Washington meetings of the International Monetary Fund and the World Bank in coming months.



One of the sources told Reuters that G20 member countries had been informed of Bessent&#8217;s decision not to attend. A second source said Bessent could not attend because he had &#8220;duties with the president.&#8221;



It was not immediately clear if those duties were linked to a possible summit meeting between U.S. President Donald Trump and Russian President Vladimir Putin.



Trump on Tuesday told reporters he would &#8220;probably&#8221; still meet with Putin to discuss ending the Ukraine war before the end of the month. The Kremlin echoed that hope early Wednesday, but said the meeting could happen later.



The White House and&nbsp;U.S. Treasury did not respond to&nbsp;requests for comment&nbsp;on&nbsp;Bessent&#8217;s&nbsp;plans. The New York Times first reported Bessent&#8217;s planned absence.



The G20&nbsp;group &#8211; which includes the U.S., China and Russia among others &#8211; has&nbsp;tackled a range of issues affecting the global economy,&nbsp;from responding to the COVID-19 pandemic and fighting inflation to&nbsp;dealing with&nbsp;climate change, debt&nbsp;distress and trade conflicts.



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



South Africa holds the G20 presidency from December 2024 to November 2025.&nbsp;The U.S. will head the group next year.



Tensions between the U.S. and South Africa have risen in recent weeks following complaints from&nbsp;Trump&nbsp;over South Africa&#8217;s land policy.



Earlier this month, Trump said that &#8220;South Africa is confiscating land&#8221; and &#8220;certain classes of people&#8221; were being treated &#8220;very badly.&#8221;



The White House said Washington would formulate a plan to resettle white South African farmers and their families as refugees, with U.S. officials to prioritize humanitarian relief for Afrikaners in South Africa, who are mostly white descendants of early Dutch and French settlers.



U.S. Secretary of State Marco Rubio subsequently canceled a trip to Johannesburg for a meeting of G20 foreign ministers on Thursday and Friday.



Mark Sobel, a former senior Treasury official, said the decision to skip the G20 gathering was a huge error.



&#8220;This was a golden opportunity for Bessent to meet his counterparts in plenary sessions and more importantly in behind-the-scenes bilaterals, including with China,&#8221; for discussions on global economic and tax policy and exchange rates, said Sobel, U.S. chair of the OMFIF think tank.



(Reporting by Andrea Shalal in Miami, Katherine Jackson in Washington and Christian Kraemer in Berlin; Additional reporting by David Lawder and Jasper Ward; Writing by David Lawder and Brendan O&#8217;Boyle; Editing by Chizu Nomiyama and Stephen Coates)

YHJLDZP43BMT3MATCRMZFOLZ6Q

US Treasury’s Bessent to skip G20 meeting in South Africa

The small

The small, plug-in device helping music artists get paid

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="463" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Transforming-Africas-Economy--820x463.png" alt="" class="wp-image-588341" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Transforming-Africas-Economy--820x463.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Transforming-Africas-Economy--300x170.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Transforming-Africas-Economy--160x90.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Transforming-Africas-Economy--768x434.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Transforming-Africas-Economy--1536x868.png 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Transforming-Africas-Economy-.png 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



As is customary in South Africa, the early months of January and February bring, through the Mining Indaba, a renewed focus on the mining sector. This year, much like in recent years, the Indaba’s spotlight extended beyond South Africa, adopting a broader regional perspective. This shift underscores the growing importance of the African Continental Free Trade Area (AfCFTA) and its role in transforming the continent’s approach to mineral beneficiation.



Mineral beneficiation has emerged as a strategic priority for Africa as it seeks to overcome economic challenges, generate employment, and foster sustainable growth. The continent is rich in valuable mineral resources such as gold, platinum, cobalt, diamonds, and rare earth elements, yet much of this wealth continues to be exported in its raw form. This reliance on raw mineral exports limits the potential for value addition and hinders the creation of downstream industries that could drive broader economic development.



The AfCFTA has positioned mineral beneficiation as a key solution to these challenges, aiming to transform Africa&#8217;s approach to its natural resources. By processing raw minerals locally rather than relying on exports, the continent can create value-added products that extend the mineral value chain, foster innovation, manufacturing, and industrial growth within the region.



<h2 class="wp-block-heading" id="h-the-local-industry">The Local Industry</h2>



In South Africa, which boasts some of the world’s largest mineral reserves, mineral beneficiation has become a cornerstone of the country’s economic strategy. The country’s historical reliance on exporting unprocessed minerals has been a major concern for policy makers and led to the development of the Mineral Beneficiation Strategy. The Strategy seeks to diversify the economy, create employment, and improve sustainability through domestic mineral processing. This approach also positions South Africa as a potential hub for high-value mineral products, attracting investment and promoting growth in sectors such as manufacturing, technology, and infrastructure.



While the benefits of mineral beneficiation are clear, the degree to which it has been realized varies across different sectors. For example, coal beneficiation has been more successful in South Africa, with most of the coal production used domestically for electricity generation. However, sectors like iron ore and platinum have faced challenges in local beneficiation. Between 1990 and 2023, South Africa saw a 230% increase in iron ore exports, while local sales decreased by 45%, partly due to the downsizing of companies such as ArcelorMittal. Similarly, platinum beneficiation declined by 55% between 2015 and 2023, driven by decreased demand from key international markets (TIPS, 2024).



Despite these challenges, mineral beneficiation remains a critical strategy for fostering inclusive and sustainable economic growth. It is a proven fact that downstream beneficiation sectors not only employ more people but also create more value from products. Furthermore, these industries typically consume less electricity and water compared to the mining sector, making them more environmentally sustainable. This shift toward beneficiation is key to building a resilient economy that is both economically diversified and environmentally conscious.



More finished products tend to have more stable prices compared to raw commodities, which are subject to fluctuations based on shifts in demand, geopolitical factors, and global market dynamics. Thus, the diversification of the export basket enhances economic resilience and provides long-term growth opportunities.



<h2 class="wp-block-heading" id="h-an-african-perspective">An African Perspective</h2>



The AfCFTA provides a framework for expanding local processing and refining capacities, promoting economic integration, and fostering a more sustainable and resilient economy. By unlocking the full potential of Africa’s mineral resources, the continent has the opportunity to turn its natural wealth into lasting prosperity.



According to the World Bank (2020), the implementation of the AfCFTA could increase the continent’s total exports by 29%, intra-African exports by over 81%, and exports to non-African countries by 19% by 2035. These increases will be driven by reduced trade costs and enhanced regional cooperation, positioning Africa as a leading player in the global economy.



However, transitioning into advanced manufacturing is not without challenges. It requires substantial investments in infrastructure, technology, skilled labour, and regulatory frameworks that foster innovation and industrial growth. Despite these challenges, the shift towards producing advanced downstream products offers substantial potential for stabilizing economies and driving sustainable development. As Africa continues to expand its efforts in mineral beneficiation, there is a clear opportunity to stabilize export revenues while fostering the growth of new, more resilient industries.



To truly unlock the potential of mineral beneficiation, Africa must focus on integrating value chains and supply chains across the continent. Some products should be produced locally to meet the continent’s needs, while others should be manufactured for the global market. As global demands evolve, shaped by trends such as climate change, technological advancements, and shifting consumer preferences; Africa must position its industries to meet both regional and international needs.



<h2 class="wp-block-heading" id="h-the-or-tambo-sez">The OR Tambo SEZ</h2>



The OR Tambo Special Economic Zone (SEZ) in South Africa has made notable strides in advancing mineral beneficiation. The successful development of the Jewellery Manufacturing Precinct serves as a testament to the power of infrastructure and a supportive enabling environment in advancing beneficiation. This initiative demonstrates that with the right conditions, it is possible not only to develop industries but also to create a platform where local businesses can compete globally.



Strategically located in Gauteng, near OR Tambo International Airport, the SEZ benefits from a significant logistical advantage. The proximity to a major international transport hub facilitates efficient access to both regional and global markets, making the OR Tambo SEZ an ideal location for export-driven industries. This prime location strengthens South Africa’s position within the global supply chain, offering companies the opportunity to reach global markets with ease.



The SEZ provides businesses in mineral beneficiation with the opportunity to compete in the global market, where sustainability is a growing priority. With a focus on green products and environmentally responsible manufacturing processes, the SEZ ensures that local industries are well-positioned to meet these global demands. By integrating sustainable practices into its strategy, the SEZ not only strengthens local beneficiation efforts but also enhances the competitiveness of South African companies, helping them thrive in a market that increasingly values both quality and environmental responsibility.



Building on the success of the Jewellery Manufacturing Precinct, the expansion phase of the OR Tambo SEZ (The Springs Precinct and Precinct 2) will incorporate further advancements in mineral beneficiation, including, amongst others, electrolyser and fuel cell production.



For more information, visit <a href="http://www.ortambosez.co,za">www.ortambosez.co,za</a>



References



World Bank. (2020). The impact of the African Continental Free Trade Area on Africa’s economy. World Bank Group. <a href="https://www.worldbank.org">https://www.worldbank.org</a> Statistics South Africa. (2023). Mineral exports and local beneficiation trends: A 30-year overview. StatsSA. <a href="https://www.statssa.gov.za">https://www.statssa.gov.za</a> Trade &amp; Industrial Policies Strategies (TIPS) (2024). Beneficiation and Industrial Policy. <a href="https://www.tips.org.za">https://www.tips.org.za</a>

Transforming Africa’s Economy

Transforming Africa’s Economy Through Mineral Beneficiation and Regional Integration

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="570" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/P6ORFY5TKVJHVLDLKUU7XJIJNQ-1-820x570.jpg" alt="" class="wp-image-588294" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/P6ORFY5TKVJHVLDLKUU7XJIJNQ-1-820x570.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/P6ORFY5TKVJHVLDLKUU7XJIJNQ-1-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/P6ORFY5TKVJHVLDLKUU7XJIJNQ-1-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/P6ORFY5TKVJHVLDLKUU7XJIJNQ-1-768x534.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/P6ORFY5TKVJHVLDLKUU7XJIJNQ-1-1536x1068.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/P6ORFY5TKVJHVLDLKUU7XJIJNQ-1-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>



CAPE TOWN, Feb 19 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s national budget was postponed at the last minute on Wednesday because of a disagreement between the political parties in the ruling coalition government.



The speaker of the National Assembly, Thoko Didiza, told lawmakers that the budget had never been postponed like this in the three decades since the end of apartheid.



The budget was now expected to be tabled on March 12, she added.



For the first time in the democratic era, the African National Congress (ANC) will need the support of other parties to pass the budget this year, since it lost its parliamentary majority in an election last year.



Its main partner in the coalition, the Democratic Alliance, said the budget had been postponed because of its opposition to the ANC&#8217;s proposal to increase value-added tax (VAT) by 2 percentage points.



The local rand currency extended losses after the budget was delayed, at one point trading down 1% against the dollar on the day.



The Business Day newspaper reported on Wednesday that the proposal to increase VAT was intended to plug holes in the education budget and support social spending.



The last time VAT was raised was in 2018, and opposition parties and labour unions have in recent weeks voiced strong opposition to rumours of a further increase.



Since the aftermath of the 2008-09 global financial crisis, the government of Africa&#8217;s most industrialised nation has struggled to deliver economic growth rates high enough to make a dent in inequality and unemployment.



Public debt has climbed steeply because of revenue shortfalls and runaway spending.



(Additional reporting by Olivia Kumwenda-Mtambo, Tannur Anders and Sfundo Parakozov in Pretoria;Writing by Bhargav Acharya;Editing by Alexander Winning and Aidan Lewis)

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Why The U.S. Has A Health Care Claim Denial Problem

A content creator’s guide to Ho Chi Minh City’s most iconic landmarks

What Is AI Distillation — And How DeepSeek Used It To Blindside OpenAI

China is likely to cut its benchmark policy rate next month, economists say, after PBOC keeps LPR steady

African Markets – Factors to watch on Feb 21

China backs Trump’s Ukraine peace bid at G20 as US allies rally behind Zelenskiy

Why Walmart Is Going After Wealthy Shoppers

Nigeria’s central bank keeps main interest rate unchanged

Botswana central bank holds key rate for third consecutive meeting

G20 foreign ministers gather amid tensions over trade, Ukraine

South African rand partially recoups losses, with focus on G20 meeting

South African Markets – Factors to watch on February 20

African Markets – Factors to watch on Feb 20

US Treasury’s Bessent to skip G20 meeting in South Africa

The small, plug-in device helping music artists get paid

Transforming Africa’s Economy Through Mineral Beneficiation and Regional Integration

South African budget postponed over lack of agreement

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