<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/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1-820x547.jpg" alt="" class="wp-image-537989" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People walk in front of closed shops as traders lock up their stores in protest of Ghana&#8217;s worsening economic conditions in Accra, Ghana October 19, 2022. REUTERS/Francis Kokoroko</figcaption></figure>



NAIROBI/LONDON, Oct 3 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s investors have signed off on its proposal to restructure $13 billion worth of international bonds, the government said on Thursday, paving the way for the country to emerge from a painful 2022 debt default.



More than 90% of bondholders voted in favour of the plan, the government said in a regulatory news statement, calling it a &#8220;pivotal milestone&#8221;, adding that the new bonds would be issued as part of the debt restructuring on or around Oct. 9.



&#8220;Our economy has turned a corner,&#8221; Ghana&#8217;s President Nana Akufo-Addo said in a separate statement. &#8220;This will allow Ghana to stabilise our finances and focus all our efforts on continuing the implementation of the ambitious reform program to improve the well-being of the Ghanaian people.&#8221;



Ghana&#8217;s near completion of the debt restructuring process leaves Ethiopia as the only other country on the continent that is still working to overhaul its debt.



Ghana has secured investor approval of its bonds restructuring after data showed its economy expanded at the fastest pace in five years in the second quarter of this year. Inflation has also been falling, allowing policymakers to cut its benchmark interest rate last month, the first easing since January.



The West African gold and cocoa producer defaulted on most of its $30 billion of international debt in 2022, as the strain of the COVID-19 pandemic, war in Ukraine and higher global interest rates tipped it into crisis.



It secured an agreement in principle with two bondholder groups in June, paving the way for the exchange offer and consent solicitation.



The existing defaulted bonds will be swapped for a number of new instruments &#8211; including so-called &#8220;disco&#8221; bonds and a par bond option capped at $1.6 billion.



Ghana is restructuring its debt under the G20 Common Framework, which has seen Zambia and Chad also reach agreements.



Investors welcomed the results of the consent solicitation and bonds exchange.



&#8220;The overwhelming support from regional and international bondholders shows strong support of the Ghana&#8217;s economic reform programme,&#8221; said Samuel Sule, financial adviser to the regional bondholders group.



&#8220;The government can now, accordingly, focus on implementation and execution of programme including promoting economic growth and fiscal consolidation.&#8221;



(Reporting by Anait Miridzhanian, Duncan Miriri and Karin Strohecker; Editing by Toby Chopra and David Evans)

Ghana traders close shops to protest worsening economy

Ghana says bondholders have signed off on $13 bln debt overhaul

Why we build robots that look and move like humans

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-820x562.jpg" alt="" class="wp-image-537954" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-768x527.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-1536x1053.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">File photo of fuel tanks at the edge of a miltary airstrip on Diego Garcia, largest island in the Chagos archipelago and site of a major United States military base in the middle of the Indian Ocean leased from Britain in 1966. clh/HO/U.S. CLH/File Photo</figcaption></figure>



LONDON, Oct 3 (Reuters)&nbsp;&#8211;&nbsp;Britain said on Thursday it would give up sovereignty of the Chagos Islands to Mauritius in a deal that would allow people displaced decades ago to return home while London retains use of the UK-U.S. military base on Diego Garcia.



Britain said that the operation of Diego Garcia, a strategic military base jointly operated with the United States, was protected by the agreement, which also allows Mauritius to resettle the rest of the islands after its population was displaced.



&#8220;This government inherited a situation where the long-term, secure operation of the Diego Garcia military base was under threat, with contested sovereignty and ongoing legal challenges,&#8221; British Foreign Minister David Lammy said in a statement.



&#8220;Today’s agreement secures this vital military base for the future. It will strengthen our role in safeguarding global security, shut down any possibility of the Indian Ocean being used as a dangerous illegal migration route to the UK, as well as guaranteeing our long-term relationship with Mauritius.&#8221;



Britain, which has controlled the region since 1814, detached the Chagos Islands in 1965 from Mauritius &#8211; a former colony that became independent three years later &#8211; to create the British Indian Ocean Territory.



In the early 1970s, it evicted almost 2,000 residents to Mauritius and the Seychelles to make way for an airbase on the largest island, Diego Garcia, which it had leased to the United States in 1966.



The World Court said in 2019 that Britain should give up control of the islands and said it had wrongfully forced the population to leave in the 1970s to make way for a U.S. air base.



In a joint statement, Britain and Mauritius said that the political agreement had the support and assistance of the United States and India.



(Reporting by Alistair Smout, William James, Muvija M and Michael Holden; Editing by Kate Holton)

FILE PHOTO OF FUEL TANKS ON INDIAN OCEAN ISLAND OF DIEGO GARCIA

Britain agrees Chagos Island sovereignty deal with Mauritius

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-820x573.jpg" alt="" class="wp-image-537951" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-1536x1073.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Workers load lithium concentrate at Prospect Lithium Zimbabwe mine in Goromonzi, Zimbabwe, January 9, 2024. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, Oct 3 (Reuters) &#8211; Zimbabwe has softened its requirements for lithium miners to process the mineral locally, a government official said on Thursday, as the industry battles to survive a price slump over the past year.



Africa&#8217;s top lithium producer, Zimbabwe had last year given producers up to March 2024 to submit plans of how they would produce battery-grade lithium in the impoverished southern African country.



Prices of lithium, which is mainly used in battery technologies, have fallen more than 80% in the past year largely due to overproduction from China and a drop in demand for electric vehicles.



The price collapse has forced companies like Chinese battery giant CATL to suspend production at certain mines. Albemarle, the world&#8217;s top lithium miner, implemented a second round of cost cuts earlier this year and laid off workers.



In Zimbabwe, lithium miners including Sinomine Resource Group&#8217;s Bikita Minerals, have been forced to cut production and lay off workers as the impact of weak prices has been compounded by the country&#8217;s poor infrastructure, currency volatility and policy inconsistencies.



The Zimbabwe government would now take a measured approach in its quest to localise lithium processing, deputy mines minister Polite Kambamura told Reuters.



&#8220;We are now considering them on a case by case basis and also considering the level of investments already put in the country,&#8221; Kambamura said.



Chinese firms including Sinomine, Zhejiang Huayou Cobalt, Chengxin Lithium Group, Yahua Group and Canmax Technologies have spent more than $1 billion over the past three years to acquire and develop lithium projects in Zimbabwe.



&#8220;Some commenced mining operations five months before the deadline, so we are considering where the project is,&#8221; he added.



Sinomine has said it plans to spend up to $500 million building a lithium sulphate plant at Bikita within the next five years.



Huayou has said it is conducting feasibility studies for a lithium sulphate plant at its Arcadia mine.



Kambamura said the government was open to dialogue with lithium miners over their struggles.



&#8220;We understand the prices are low but they are beginning to firm up. The fact that there are upcoming projects means the environment is favourable,&#8221; he added.



(Reporting by Nyasha Chingono; Editing by Nelson Banya and Angus MacSwan)

Workers load lithium concentrate at Prospect Lithium Zimbabwe mine in Goromonzi

Zimbabwe softens stance on local lithium processing after price collapse

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="572" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/6UEX6ZZXS5I7LFHDVDQZU4YJV4-820x572.jpg" alt="" class="wp-image-537933" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/6UEX6ZZXS5I7LFHDVDQZU4YJV4-820x572.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/6UEX6ZZXS5I7LFHDVDQZU4YJV4-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/6UEX6ZZXS5I7LFHDVDQZU4YJV4-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/6UEX6ZZXS5I7LFHDVDQZU4YJV4-768x536.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/6UEX6ZZXS5I7LFHDVDQZU4YJV4-1536x1072.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/6UEX6ZZXS5I7LFHDVDQZU4YJV4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Ethiopian Prime Minister Abiy Ahmed attends the 60th anniversary of the Organization of African Unity (OAU)/African Union (AU) at the African Union Commission (AUC) Headquarters in Addis Ababa, Ethiopia May 25, 2023. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



NAIROBI, Oct 3 (Reuters) &#8211; A group of Ethiopia&#8217;s international bondholders rejected on Thursday the outlines of a government restructuring proposal for its $1 billion bond that was presented in an investors call earlier this week.



Ethiopia became Africa&#8217;s third default in as many years in December 2023. Progress on debt restructuring has been sluggish amid slow movement on reforms and drawn-out negotiations of a $3.4 billion programme with the International Monetary Fund.



During a call with global investors on Tuesday, the government sketched out &#8220;illustrative&#8221; terms of a bond restructuring, saying an 18% haircut &#8211; or writedown &#8211; on the nominal value of its sole outstanding dollar bond, excluding past due interest, would be compatible with debt sustainability targets.



&#8220;A haircut of the 2024 Notes principal claim is wholly inconsistent with the Committee’s evaluation of Ethiopia’s economic fundamentals,&#8221;&nbsp;the group of bondholders&nbsp;said in an emailed statement.



&#8220;As such, the Committee does not consider the illustrative terms to be a reasonable starting point for negotiation, a view that is shared by others in the wider bondholder community,&#8221; the&nbsp;group&#8217;s statement said.



A new bond issued to holders as part of the restructuring would have a 5% coupon and mature in June 2031, the government said in its presentation.



(Reporting by Duncan Miriri and George Obulutsa, editing by Karin Strohecker and Gareth Jones)

FILE PHOTO: 60th anniversary of the Organization African Unity (OAU)/African Union (AU) in Addis Ababa

Ethiopia bondholders reject government’s $1 bln bond restructuring outline

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-820x547.jpg" alt="" class="wp-image-505639" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A South African one rand coin sits on South African rand banknotes in this arranged photograph in Pretoria, South Africa, on Wednesday, Aug. 14, 2019. The rand ended a tumultuous week on a positive note, gaining against the dollar for a second day and heading for its first weekly advance in four as technical indicators suggested recent declines are overdone. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Oct 3 (Reuters)&nbsp;&#8211;&nbsp;The South African rand wavered on Thursday against a buoyant dollar, as tensions simmered in the Middle East following Iran&#8217;s ballistic missile attack on Israel.



At 0830 GMT, the rand was trading at 17.34 against the dollar, about 0.1% firmer than its previous close, after trading slightly weaker in earlier trade.



&#8220;The USD saw strength due to Middle East tensions and strong U.S. labour data, placing pressure on the ZAR,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



The dollar strengthened after robust U.S. jobs data on Wednesday reinforced bets that the Federal Reserve will not rush to cut interest rates in the world&#8217;s biggest economy.



The greenback saw additional demand after an Iranian missile attack on Israel on Tuesday boosted safe-haven assets.



Like other risk-sensitive currencies, the rand often takes direction from global drivers in the absence of major local factors.



&#8220;While the ZAR has been the best-performing emerging market currency, a correction was overdue after significant appreciation,&#8221; Cilliers said.



The rand has gained about 6% over the last three months.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index last traded about 1.2% weaker.



South Africa&#8217;s benchmark 2030 government bond was slightly firmer, with the yield down 2.5 basis points at 9.035%.



(Reporting by Tannur Anders; Editing by Sherry Jacob-Phillips and Mark Potter)

South African Rand Rebound Snaps Streak of Weekly Losses

South African rand seesaws against buoyant dollar

<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="720" height="458" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_TA2USGDCXBOXJAPYDCXGGP66XA.jpg" alt="" class="wp-image-537913" style="width:720px;height:auto" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_TA2USGDCXBOXJAPYDCXGGP66XA.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_TA2USGDCXBOXJAPYDCXGGP66XA-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_TA2USGDCXBOXJAPYDCXGGP66XA-141x90.jpg 141w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">A general picture shows the skyline of Tanzania&#8217;s port city of Dar es Salaam, File. REUTERS/Andrew Emmanuel</figcaption></figure>



DAR ES SALAAM, Oct 3 (Reuters) &#8211; Tanzania&#8217;s central bank held its key interest rate unchanged at 6%, it said on Thursday.



In the two quarters to September, the central bank held the benchmark rate at 6%, from 5.5% that was announced in January when the bank introduced the rate.



The bank targets inflation of 5%, but consumer inflation has stayed comfortably below that figure, despite growing pressure on the shilling.



Inflation increased to 3.1% year-on-year in August from 3.0% the previous month, data from the statistics office showed.



(Reporting by Nuzulack Dausen; Writing by George Obulutsa; Editing by Christina Fincher)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_TA2USGDCXBOXJAPYDCXGGP66XA

Tanzania central bank holds lending rate at 6%

<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/JE32P5X24BNSPKUAPSW6ES36KM-820x547.jpg" alt="" class="wp-image-537910" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JE32P5X24BNSPKUAPSW6ES36KM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JE32P5X24BNSPKUAPSW6ES36KM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JE32P5X24BNSPKUAPSW6ES36KM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JE32P5X24BNSPKUAPSW6ES36KM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JE32P5X24BNSPKUAPSW6ES36KM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/JE32P5X24BNSPKUAPSW6ES36KM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A security guard stands at the entrance of the Stanbic Bank in Abidjan, Ivory Coast April 9, 2018. REUTERS/Luc Gnago</figcaption></figure>



NAIROBI, Oct 3 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s private sector saw a slight deterioration in business conditions in September as output and new orders contracted again, reversing the brief recovery seen in August, Stanbic Bank reported on Thursday.



The Stanbic Bank Kenya Purchasing Managers&#8217; Index (PMI) fell to 49.7 in September from 50.6 in August, dropping below the 50.0 threshold that separates growth from contraction and marking the third decline in four months.



&#8220;Business conditions contracted slightly in September, implying that the pickup in August was due to some recovery after the disruptions caused by protests earlier this year,&#8221; said Christopher Legilisho, Economist at Stanbic Bank.



The survey highlighted that economic challenges for both businesses and households led to reduced sales and a fresh drop in activity. However, the slowdown helped cut input price inflation, resulting in only a marginal rise in output prices.



Despite the overall decline, some sectors showed improvement, with manufacturing and construction firms reporting higher sales. However, agriculture, wholesale &amp; retail, and services sectors experienced declines.



Employment levels were stable, with the employment subindex at the 50.0 no-change mark. Firms reported little need to hire new staff or replace voluntary leavers due to slowing production capacity.



Input price inflation softened, leading to the weakest rise in business expenses in four months. The marginal increase in input costs resulted in a similarly mild jump in prices charged to customers.



Business expectations for the coming year remained subdued, with only 4% of survey respondents expecting an upturn.



&#8220;Business expectations for the coming year remain at their weakest levels in a decade due to the economic headwinds of this year,&#8221; Legilisho added.



The survey also noted that stable exchange rates and fuel prices over the past two months contributed to the moderation in cost pressures, with inflation expected to remain muted at around 4-4.5%.



(Reporting by Nairobi bureau; Editing by Hugh Lawson)

Security guard stands at the entrance of the Stanbic Bank in Abidjan

Kenyan private sector conditions weaken in September, PMI shows

<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/D4ASV6Y32RILJI4KL3SWHYT4ZY-820x547.jpg" alt="" class="wp-image-537892" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/D4ASV6Y32RILJI4KL3SWHYT4ZY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/D4ASV6Y32RILJI4KL3SWHYT4ZY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/D4ASV6Y32RILJI4KL3SWHYT4ZY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/D4ASV6Y32RILJI4KL3SWHYT4ZY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/D4ASV6Y32RILJI4KL3SWHYT4ZY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/D4ASV6Y32RILJI4KL3SWHYT4ZY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Soldiers from the Rwandan security forces are seen near the Afungi natural gas site, Mozambique September 22, 2021. REUTERS/Baz Ratner/File Photo</figcaption></figure>



JOHANNESBURG, Oct 3 (Reuters) &#8211; Mozambique&#8217;s ruling party candidate in this month&#8217;s elections, who is almost certain to win, is likely to continue relying on Rwanda&#8217;s military and European money to secure its huge gas fields in a region beset by Islamist violence, analysts say.



Campaigning under the slogan &#8220;let&#8217;s get to work&#8221;, ex-high school teacher Daniel Chapo, 47, is expected to oversee the building of two liquefied natural gas (LNG) projects currently on hold because of insecurity in northern Cabo Delgado province.



To achieve this,&nbsp;he must lean heavily on Rwanda&#8217;s military, brought in by current President Felipe Nyusi in 2021 to bolster struggling local troops.



&#8220;The Rwandans are undeniably competent,&#8221; Tertius Jacobs, lead analyst for Mozambique at risk consultancy Focus Group, said. &#8220;Mozambique &#8230; has little to no better alternative.&#8221;



Rwandan units, including special forces, are tasked with securing territory around the Afungi site where TotalEnergies and ExxonMobil plan LNG projects.



Nyusi&#8217;s introducing Chapo to Rwandan president Paul Kagame in June was a nod to continuity, Jacobs said, amid civil society reports from Maputo that Rwandan security forces could build a new camp in Quissanga district to buffer against insurgent activity from the north, thereby enhancing security during elections.



Rwandan forces are shouldering larger responsibilities after regional southern African soldiers withdrew in July this year. A spokesperson did not respond to an emailed request for comment.



Recent attacks by suspected Islamists include a February ambush that killed more than 20 Mozambican soldiers, helping displace tens of thousands of people in one of the worst skirmishes since 2021, when TotalEnergies halted its $20 billion project.



ExxonMobil&#8217;s neighbouring project is also on hold, frustrating Mozambique&#8217;s ambitions to become a major gas exporter.



TotalEnergies CEO Patrick Pouyanne has said work could restart this year if security continues to improve, although funding is another concern.



ExxonMobil is expected to make a final investment decision by end-2025.



&#8220;Rwanda will remain the key. They have thousands of troops there to protect the LNG sites,&#8221; Robert Besseling, CEO of consultancy Pangea-Risk said.



Already a major funder, the EU is mulling further support to Rwandan efforts to quell the insurgency, a spokesperson said.



&#8220;The fight against terrorism in Cabo Delgado is a common fight,&#8221; she said.



(Reporting by Wendell Roelf; Editing by Tim Cocks and Alex Richardson)

FILE PHOTO: Soldiers from the Rwandan security forces are seen near the Afungi natural gas site

Mozambique’s presidential frontrunner likely to keep Rwandans protecting gas sites

<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-1076949610-612x612-1-1.jpg" alt="" class="wp-image-524600" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Oct 3 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, company announcements, equity and currency market moves could affect South African markets on Thursday.



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



S&amp;P Global Whole Economy PMI for September.



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



South African mining executives gather for an annual industry conference.



South Africa&#8217;s second-biggest grocery group SPAR appointed Moegamat Reeza Isaacs as chief financial officer with effect from Jan. 1, 2025.



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



The South African rand weakened against a stronger dollar on Wednesday.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed about 0.6% higher.



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



Japanese stocks jumped and the yen fell on Thursday as the risk of further tightening in monetary policy this year faded, while a sizzling rally in Hong Kong&#8217;s share market took a breather.



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



The S&amp;P 500 ended little changed on Wednesday, with technology shares gaining but investors nervous about Middle East tensions and more U.S. labour data due this week.



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



Gold prices were trading in a tight range on Thursday as traders remained on the sidelines ahead of U.S. economic data that could provide clues about the size of Federal Reserve interest rate cuts expected later this year.



(Compiled by Tannur Anders; Editing by David Goodman)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Oct 3

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



NAIROBI, Oct 3 (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>



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



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



Japanese stocks jumped and the yen fell on Thursday as the risk of further tightening in monetary policy this year faded, while the sizzling rally in Hong Kong&#8217;s share market took a breather.



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



Oil prices rose on Thursday as the prospect of a widening Middle East conflict that could disrupt crude oil flows from the key exporting region overshadowed a stronger global supply outlook.



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



The South African rand weakened against a stronger dollar on Wednesday, as markets worried about rising tensions in the Middle East.



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



Kenya&#8217;s shilling was steady on Wednesday, and was expected to firm, helped by dollar inflows from tea exporters, traders said.



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



Kenya&#8217;s economy expanded by 4.6% year-on-year in the second quarter of 2024, down from 5.6% in the corresponding quarter of the previous year, the national statistics office said on Wednesday.



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



Kenya&#8217;s central bank rate should start lowering its lending rate due to falling inflation in recent months, Finance Minister John Mbadi said on Wednesday.



<h2 class="wp-block-heading" id="h-uganda-foreign-exchange-reserves">UGANDA FOREIGN EXCHANGE RESERVES</h2>



Uganda&#8217;s foreign exchange reserves shrank 4.3% in the three months to the end of July from the previous three months, extending a recent downward trend, the central bank said in a report published on Wednesday.



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



Uganda is seeking funds to build three hydropower plants that would add over 1,600 megawatts (MW) of capacity to help meet rising power demand, an energy official said on Wednesday.



<h2 class="wp-block-heading" id="h-madagascar-mining">MADAGASCAR MINING</h2>



Madagascar&#8217;s nickel and cobalt miner Ambatovy has shut down a pipeline supplying ore from its mine in the country&#8217;s east to a processing and refinery plant due to damage, its major shareholder Sumitomo Corp 8053.T said.



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



Ivory Coast, the world&#8217;s top cocoa producer, has granted cocoa export licences to 106 companies and cooperatives for the 2024/25 season, up from 92 last season, according to a document from the Coffee and Cocoa Council (CCC) seen by Reuters on Wednesday.



<h2 class="wp-block-heading" id="h-mozambique-petroleum">MOZAMBIQUE PETROLEUM</h2>



Patrick Pouyanne, the chairman and chief executive of TotalEnergies, said he planned to go to Mozambique later this month to meet the country&#8217;s new president over the company&#8217;s planned project in Mozambique.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Oct 3

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="502" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7VVFWAQIAZKZBBQ2YVQI7LMDJQ-820x502.jpg" alt="" class="wp-image-537870" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7VVFWAQIAZKZBBQ2YVQI7LMDJQ-820x502.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7VVFWAQIAZKZBBQ2YVQI7LMDJQ-300x184.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7VVFWAQIAZKZBBQ2YVQI7LMDJQ-147x90.jpg 147w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7VVFWAQIAZKZBBQ2YVQI7LMDJQ-768x471.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7VVFWAQIAZKZBBQ2YVQI7LMDJQ-1536x941.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7VVFWAQIAZKZBBQ2YVQI7LMDJQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Customers walk beneath a company logo for the South African supermarket chain SPAR Group as they arrive at a supermarket in Johannesburg, South Africa, June 7, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Oct 3 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s second-biggest grocery group SPAR&nbsp;SPPJ.J&nbsp;appointed Moegamat Reeza Isaacs as chief financial officer with effect from Jan 1, 2025, the company said in a statement on Thursday.



Isaacs was the group finance director of upmarket retailer and SPAR competitor Woolworths Holdings Limited from 2013 to 2023.



&#8220;Mr Isaacs has strong strategic and operational finance experience that will add considerable value to the company,&#8221; SPAR said in the statement.



He succeeds Mark Godfrey, whose decision to retire was announced in June. Godfrey will step back from his role as group CFO on Dec. 31.



(Reporting by Tannur Anders; Editing by Clarence Fernandez and Himani Sarkar)

FILE PHOTO: Customers walk beneath a company logo for the South African supermarket chain SPAR Group as they arrive at a supermarket in Johannesburg, South Africa,

South African grocery retailer SPAR appoints new CFO

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108042150-1727870753022-gettyimages-1402178496-mt_25085_c18473a3-f9fe-4ce4-93d8-345c2499380c-820x462.png" alt="" class="wp-image-537837" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108042150-1727870753022-gettyimages-1402178496-mt_25085_c18473a3-f9fe-4ce4-93d8-345c2499380c-820x462.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108042150-1727870753022-gettyimages-1402178496-mt_25085_c18473a3-f9fe-4ce4-93d8-345c2499380c-300x169.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108042150-1727870753022-gettyimages-1402178496-mt_25085_c18473a3-f9fe-4ce4-93d8-345c2499380c-160x90.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108042150-1727870753022-gettyimages-1402178496-mt_25085_c18473a3-f9fe-4ce4-93d8-345c2499380c-768x432.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/108042150-1727870753022-gettyimages-1402178496-mt_25085_c18473a3-f9fe-4ce4-93d8-345c2499380c.png 1480w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Mario Tama | Getty Images News | Getty Images</figcaption></figure>



President Joe Biden and his administration are sticking to their position of not invoking the Taft-Hartley Act to force International Longshoremen’s Association dock workers back on the job at East and Gulf coast ports where a strike is hitting day two on Wednesday, a political decision that reflects the power of unions one month out from an election but risks losing some progress on what is the No. 1 issue for many voters: the economy.



Rhetoric from Cabinet secretaries, including Transportation Secretary Pete Buttigieg and acting Labor Secretary Julie Su, has become sharper in recent days, pointing the finger at the ports ownership and ocean carriers. But right now, there is no sign of any progress bringing the ILA and port owners back to the table for a new round of negotiations, according to CNBC sources. And there remains a big risk on the other side of the political decision-making: wage increases that are a win for workers but ultimately ripple through the economy in the form of higher prices, both domestically and around the world.



Much of the focus about the economic impact of the ports strike to date has been focused on the direct hit to the economy from the massive trade shutdown, and the ways in which supply chain congestion and delays can result in higher prices being passed along to consumers, which will become a bigger factor the longer a strike persists. But maritime and business experts are also warning about the risk of persistent wage inflation making its way into supply chain prices that the Federal Reserve has recently been successful in taming.



“The wage increase would indeed be passed on and eventually be paid by the importers,” said Lars Jensen, CEO of Vespucci Maritime, a maritime shipping consultant. “The inflationary impact would vary dramatically depending on the value of the goods inside the container,” he said, adding the influence would be an even bigger impact for agricultural exporters.



The ILA’s president, Harold Daggett, is seeking a raise as high as $5 per hour, per year, over a six-year period in a new contract for union port workers in a labor battle with the United States Maritime Alliance. The USMX, which represents port ownership, last offered what it described as a nearly 50% wage increase over six years on Monday, an offer rejected by the union. The USMX reiterated that offer on Tuesday, saying in a statement that its “current offer of a nearly 50% wage increase exceeds every other recent union settlement, while addressing inflation, and recognizing the ILA’s hard work to keep the global economy running.”



But Daggett countered claims of any “significant increase,” saying in the ILA’s own Tuesday statement that the USMX “conveniently omit that many of our members are operating multi-million-dollar container-handling equipment for a mere $20 an hour. In some states, the minimum wage is already $15.” The ILA president added that “the USMX also overlooks the fact that two-thirds of our members are constantly on call, with no guaranteed employment if no ships are being worked. Our members qualify for benefits only based on the hours they worked the previous year, making them vulnerable if there’s a downturn in work.”



Daggett told CNBC on Tuesday morning that the ILA is seeking a wage increase of 61.5%.



The USMX has not reached back out to the ILA with any new counteroffer, and the sides are not currently at the negotiating table, according to sources granted anonymity due to the sensitive nature of the labor discussions.



While a significant wage hike would undoubtedly be a big win for workers and a resurgent labor movement — which has used extreme terminology to tell Biden what it would think of a decision to intervene in the strike — with the union and port ownership group at an impasse, the ocean carriers have begun to take steps to protect their own financial position in the near term for as long as a strike persists. CMA CGM, one of the world’s largest ocean carriers, declared a force majeure on Tuesday, a legal maneuver to free itself of contract requirements with shipping clients due to forces beyond its control, and said it “may charge any additional operational costs” associated with vessels delayed due to the strike to cargo on the water as of Oct. 1, 2024 with a U.S. East or Gulf coast port of discharge.



Biden said Tuesday that his administration will be “monitoring for any price gouging activity” that benefits foreign ocean carriers, including those on the USMX board. He also said “foreign ocean carriers have made record profits since the pandemic, when Longshoremen put themselves at risk to keep ports open.”



Based on prior port strikes, ocean carriers normally profit from soaring freight rates based on demand for other ports as well as detention and demurrage fees on containers stranded during a ports shutdown. Analysts have been warning ocean spot rates could increase by 20%-50%. UBS forecast that 20% of Maersk’s total volume would touch a U.S. port that would be impacted by the strike. Maersk is on the board of the USMX. UBS estimated that if freight rates increased 30% over two quarters, a revenue tail wind of more than $1 billion would be generated.



Buttigieg said Tuesday that the DOT is monitoring “any attempts by companies to opportunistically raise prices, including ocean shippers or others,” and called on ocean carriers to withdraw surcharges. “No one should exploit a disruption for profit,” he said in a DOT statement. He added that the Federal Maritime Commission will use expanded authority signed into law by Biden to “ensure any fees assessed are legitimate and lawful.”



But the still more significant price hikes would occur after a successful deal for the ILA, according to some economists, even though the total number of workers involved in the strike, at around 50,000, is a blip in a U.S. labor market that employs well over 100 million people. It comes amid other union battles across the U.S. economy targeting aviation and automakers. “The scale of wage demands at the ports,&nbsp;<a href="https://www.cnbc.com/2024/09/23/boeing-labor-proposal-best-and-final-offer-strike.html">at Boeing</a>, and at&nbsp;<a href="https://www.cnbc.com/2024/09/19/uaw-warns-of-potential-strikes-at-ford-stellantis.html">autoworkers</a>, make one laugh at the claims that the labor market is soft and that wage inflation is dead,” said Larry Lindsey,&nbsp;CEO of The Lindsey Group.



Acting Labor Secretary Su lashed out at the idea that labor wage increases would be passed onto U.S. exporters and importers.



“At the same time that we were urging them to put a fair offer on the table to avoid all the disruption, they were calculating how much of a surcharge they could charge for shipping in light of a strike,” said Su said in an interview. “I mean, it’s really an outrageous position.”



For months, logistics and business trade groups representing major industries from retail to manufacturing and agriculture have sent numerous letters to Biden and his administration urging intervention. Now, with the president sticking to his position that collective bargaining is the only means for a “fair deal” for the ILA, executives across the economy are beginning to weight the potential pricing impacts for their business models.



“It quickly renders our U.S. agriculture exports much less competitive in the global marketplace,” said Peter Friedmann, executive director of the Agriculture Transportation Coalition, of any logistics rate increases his sector would see. “Our foreign customers can satisfy their food, farm, and fiber needs from other countries, which is where they will go, &nbsp;as costs of moving containers through U.S. ports continue to increase.”



Su said she is very sympathetic to the needs of the business community, but stuck to the administration’s position. “I’ve been in many conversations with them too,” she said. “I understand just how important the impact of a good resolution is. I know they understand, just as consumers and American workers understand, that foreign companies who profit from our economy and who employ American workers and have an impact on American consumers should do the right thing, and in that battle, we are always going to stand with American workers, American businesses and American consumers.”



The Federal Reserve has recently become more concerned about the labor market than inflation and has begun cutting interest rates to “recalibrate” its monetary policy in a bid to prevent a rise in layoffs and betting inflation is on its way back to 2%, which recent data supports. In the most recent nonfarm payrolls report for August, average hourly earnings increased by 0.4% on the month and 3.8% from a year ago, both higher than estimates. The September nonfarm payrolls report is due out Friday and in the short term, the union battle could influence the data on both wages and layoffs.



The big payroll report immediately ahead of the government data, the ADP private payrolls report, showed on Wednesday that while hiring increased, pay growth has continued to trend down. The annual gain for those remaining in their jobs decreased to 4.7%, while it fell even more for job switchers, to 6.6%, down 0.7 percentage point from August. The upcoming nonfarm payrolls report is the last the Fed will receive before its next interest rate policy decision in November, and it could include downward pressures in the labor market as well, influenced by both layoffs related to the strike and Hurricane Helene.



“This would just completely complicate everything that the Fed is trying to do because they’re not getting a read to what the economy is actually performing,” Jim Bianco, head of Bianco Research, told CNBC’s “Fast Money” on Tuesday.



In the longer-term analysis, the wage increase being sought by the union will confirm that wage growth is not going back to its pre-Covid trend, of about 2.5%, according to Peter Boockvar, chief investment officer at Bleakley Financial Group. Instead, he estimates it will settle around 4%, which will put a floor under inflation.



“I continue to believe that after the disinflation plays out, which is mostly taking place in goods, 3-4% will be the normalized inflation rate,” said Boockvar. “And this wage deal, when it happens, will result in goods prices to inflect higher.”



At its recent September Federal Open Market Committee meeting, Fed officials lowered their inflation outlook to 2.3% from 2.6% previously, and the central bank’s own supply chain indicator has stabilized after the pandemic shocks. But its forecast of a long-run neutral rate near 2.9% has moved higher as the Fed continues to pursue its stated mandate of 2% inflation.



“For those dependent on functioning ports for their livelihood, the collateral damage is often underestimated by those watching from afar,” said Alan Baer, CEO of logistics firm OL USA. &nbsp;



On Wednesday, the National Retail Federation coordinated a coalition of 272 trade associations including manufacturers, farmers, wholesalers, retailers, restaurants, and importers and exporters, to send another letter to Biden pleading for him to end the strike.



Steve Lamar, CEO of the American Apparel &amp; Footwear Association, one of the groups which signed the letter, said it’s imperative that the Biden administration use all the tools at its disposal, including its authorities under Taft-Hartley, to keep the parties at the negotiating table, the ports opened and goods moving efficiently. “Allowing the status quo to persist increases the likelihood that this port crisis will hurt our industry and the overall U.S. economy through job losses, higher prices, and goods shortages,” said Lamar.



In December 2022, Biden signed legislation making a planned freight rail strike illegal, even though key issues sought by rail workers and their unions were not included in the bill. At that time, the president said it “helps our nation avoid what, without a doubt, would have been an economic catastrophe at a very bad time in the calendar.”



That situation put “union Joe” Biden in a difficult position, but he said at the time of the signing that while his support for unions was as strong as ever, as president of the United States, rather than a single senator from Delaware, it was his job to look out for all Americans.&nbsp;



— Reporting by CNBC’s Jeff Cox contributed to this article.



Correction: Lars Jensen is CEO of Vespucci Maritime. An earlier version misspelled his name.

108042150-1727870753022-gettyimages-1402178496-mt_25085_c18473a3-f9fe-4ce4-93d8-345c2499380c

The East and Gulf coast ports strike could be a no-win situation for the Biden administration

Will Tesla Robotaxis Live Up To 10 Years Of Development And Hype?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="575" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-820x575.jpg" alt="" class="wp-image-454022" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-820x575.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-768x539.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-1536x1078.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man shows off Zimbabwean currency notes outside a grocery store in Harare, Zimbabwe, March 17, 2022. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, Oct 2 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s President Emmerson Mnangagwa on Wednesday vowed to implement corrective measures to protect people&#8217;s incomes after the country&#8217;s new gold-backed currency slid on the black market five months after it was introduced.



The ZiG, short for Zimbabwe Gold, was devalued 43% last Friday after it lost nearly 47% on the black market.



&#8220;We note with concern the resurgence of the parallel market activities driven by speculative tendencies. Corrective measures are being instituted to protect Zimbabweans from disruptions,&#8221; Mnangagwa said in an address to the parliament.



Since the devaluation, the ZiG has again weakened from Friday&#8217;s rate of 24.3902 to 25.2824 on Wednesday, while on the black market it has slipped to 32 per U.S. dollar.



Mnangagwa said the devaluation of the ZiG will allow &#8220;greater flexibility&#8221; and encourage people holding forex to trade on the official market.



&#8220;Government remains committed to backing the currency through setting aside 50% of royalties to build reserves,&#8221; he said.



The ZiG is the southern African country&#8217;s sixth attempt at a stable currency in 15 years after a bout of hyperinflation under former longtime leader Robert Mugabe.



Following a meeting with central bank officials, the Bankers Association of Zimbabwe on Wednesday said last week&#8217;s move would cause price hikes and weaken confidence.



(Reporting by Nyasha Chingono, Editing by Bhargav Acharya and Andrea Ricci)

FILE PHOTO: Zimbabwe’s poor feel the impact of far away Ukraine war

Zimbabwe’s president vows to implement measures to stop currency slide

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg" alt="" class="wp-image-433145" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi/</figcaption></figure>



NAIROBI, Oct 2 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s central bank rate should start lowering its lending rate due to falling inflation in recent months, Finance Minister John Mbadi said on Wednesday.



Kenya&#8217;s government targets an inflation rate of between 2.5% and 7.5% in the medium term.



Inflation fell to 3.6% year-on-year in September from 4.4% a month earlier, while it stood at 4.3% in July.



&#8220;Inflation rate is firmly under control now,&#8221; Mbadi said during an appearance at the Senate.



&#8220;We think now that the central bank should start lowering the interest rate so that we encourage the private sector to uptake more loans, create job opportunities.&#8221;



The central bank is due to announce its next interest rate decision on Oct. 8.



It lowered its benchmark lending rate by 25 basis points in August, saying there was scope to ease policy gradually as inflation had fallen below the midpoint of its target range.



Mbadi said the effects of a strengthening shilling and the central bank&#8217;s earlier tight monetary policy stance had also contributed to the falling inflation rates.



(Reporting by George Obulutsa; Editing by Jason Neely and Peter Graff)

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Ghana says bondholders have signed off on $13 bln debt overhaul

Why we build robots that look and move like humans

Britain agrees Chagos Island sovereignty deal with Mauritius

Zimbabwe softens stance on local lithium processing after price collapse

Ethiopia bondholders reject government’s $1 bln bond restructuring outline

South African rand seesaws against buoyant dollar

Tanzania central bank holds lending rate at 6%

Kenyan private sector conditions weaken in September, PMI shows

Mozambique’s presidential frontrunner likely to keep Rwandans protecting gas sites

South African Markets – Factors to watch on Oct 3

African Markets – Factors to watch on Oct 3

Why we build robots that look and move like humans

South African grocery retailer SPAR appoints new CFO

The East and Gulf coast ports strike could be a no-win situation for the Biden administration

Will Tesla Robotaxis Live Up To 10 Years Of Development And Hype?

Zimbabwe’s president vows to implement measures to stop currency slide

Kenya’s central bank should start cutting lending rate, finance minister says

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Ghana says bondholders have signed off on $13 bln debt overhaul

Why we build robots that look and move like humans

Britain agrees Chagos Island sovereignty deal with Mauritius

Zimbabwe softens stance on local lithium processing after price collapse

Ethiopia bondholders reject government’s $1 bln bond restructuring outline

South African rand seesaws against buoyant dollar

Tanzania central bank holds lending rate at 6%

Kenyan private sector conditions weaken in September, PMI shows

Mozambique’s presidential frontrunner likely to keep Rwandans protecting gas sites

South African Markets – Factors to watch on Oct 3

African Markets – Factors to watch on Oct 3

Why we build robots that look and move like humans

South African grocery retailer SPAR appoints new CFO

The East and Gulf coast ports strike could be a no-win situation for the Biden administration

Will Tesla Robotaxis Live Up To 10 Years Of Development And Hype?

Zimbabwe’s president vows to implement measures to stop currency slide

Kenya’s central bank should start cutting lending rate, finance minister says

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