
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="439" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand-Dec.avif" alt="" class="wp-image-568249"/><figcaption class="wp-element-caption">South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration/File Photo</figcaption></figure>



<p>JOHANNESBURG, Feb 6 (Reuters)&nbsp;&#8211;&nbsp;The South African rand weakened early on Thursday as investors focussed on President Cyril Ramaphosa&#8217;s national address for clarity on the country&#8217;s economic and political policies.</p>



<p>At 0641 GMT, the rand traded at 18.5925 against the dollar, about 0.3% weaker than its previous close.</p>



<p>Ramaphosa will deliver around 1700 GMT the annual State of the Nation Address (SONA), the first under his coalition government, which will provide investors some clarity on economic reforms and the country&#8217;s approach to structural challenges.</p>



<p>Although SONA has traditionally not been a market-moving event, this address could be different, analysts said.</p>



<p>A highlight may be the economic reforms underway, which are key to removing the country from the Financial Action Task Force&#8217;s greylist and stabilising the fiscus.</p>



<p>U.S. President Donald Trump said on Sunday, without citing evidence, that &#8220;South Africa is confiscating land&#8221; and &#8220;certain classes of people&#8221; were being treated &#8220;very badly&#8221;. He said he would cut funding until the matter was investigated.</p>



<p>ETM Analytics said in a research note that Ramaphosa will want to use the opportunity of SONA to paint the country&#8217;s future efforts in a better light.</p>



<p>&#8220;This SONA will, therefore, be the main event of the day and capture the bulk of the market&#8217;s attention through the afternoon and evening as it receives more and more coverage,&#8221; the note added.</p>



<p>South Africa&#8217;s benchmark 2030 government bond was weaker in early deals, with the yield up 1.5 basis points at 9.06%.</p>



<p>(Reporting by Sfundo Parakozov; Editing by Tannur Anders and Sherry Jacob-Phillips)</p>


rand Dec

South African rand weakens; traders focus on president’s address


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="494" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/J5ZTGSBRZ5N6RNIBC3KXDSSQAE-820x494.jpg" alt="" class="wp-image-503084" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/J5ZTGSBRZ5N6RNIBC3KXDSSQAE-820x494.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/J5ZTGSBRZ5N6RNIBC3KXDSSQAE-300x181.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/J5ZTGSBRZ5N6RNIBC3KXDSSQAE-149x90.jpg 149w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/J5ZTGSBRZ5N6RNIBC3KXDSSQAE-768x463.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/J5ZTGSBRZ5N6RNIBC3KXDSSQAE-1536x926.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/J5ZTGSBRZ5N6RNIBC3KXDSSQAE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A logo is seen on the roof of the ArcelorMittal steelworks headquarters in Ostrava, Czech Republic, April 1, 2016.   REUTERS/David W Cerny/File Photo</figcaption></figure>



<p>Feb 6 (Reuters) &#8211; ArcelorMittal South Africa said on Thursday it will delay the closure of its long-steel plant operations by a month, as the steelmaker engages in talks with the government to salvage the business.</p>



<p>The company had planned to start winding down the loss-making long-steel business by the end of last month, but has delayed it due &#8220;continuing discussions with the South African government&#8221; as well as higher-than-anticipated orders.</p>



<p>The outcome of the talks will be announced before the end of this month, the steelmaker said in a statement.</p>



<p>The company stated that a 380 million rand ($20.44 million) loan from the Industrial Development Corporation of South Africa, its second-largest shareholder after parent company ArcelorMittal, has facilitated the continued operations of its long-steel business.</p>



<p>ArcelorMittal South Africa also reported a headline loss of 5.1 billion rand for the year ended December 31, wider than the headline loss of 1.89 billion rand in 2023.</p>



<p>The company said the losses were mainly driven by the weak financial performance of its long steel business on the back of soft demand, high energy and logistics costs, as well as the influx of low-cost steel imports, particularly from China.</p>



<p>The closure of the long-steel operations, which produce fencing material, rail, rods and bars used in the construction, mining and manufacturing sectors, has been on the cards since November 2023. The shutdown could affect about 3,500 direct and indirect jobs.</p>



<p>($1 = 18.5867 rand)</p>



<p>(Reporting by Nelson Banya; Editing by Sherry Jacob-Phillips)</p>


FILE PHOTO: A logo is seen on the roof of the ArcelorMittal steelworks headquarters in Ostrava

ArcelorMittal South Africa delays long-steel plant closure amid government talks


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/istockphoto-1076949610-612x612-1-2.jpg" alt="" class="wp-image-573311" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/istockphoto-1076949610-612x612-1-2.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/istockphoto-1076949610-612x612-1-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/istockphoto-1076949610-612x612-1-2-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



<p>JOHANNESBURG, Feb 6 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled political event, company announcement, equity and currency market moves may affect South African markets on Thursday.</p>



<h2 class="wp-block-heading" id="h-political-event">POLITICAL EVENT</h2>



<p>South African President Cyril Ramaphosa&#8217;s annual State of the Nation Address at 1700 GMT</p>



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



<p>ArcelorMittal full-year financial results</p>



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



<p>South Africa&#8217;s rand gained against a weaker dollar on Wednesday, as investors awaited President Cyril Ramaphosa&#8217;s national address on Thursday and closely watched developments between the U.S. and China in their dispute over tariffs.</p>



<p>On the stock market, the Top-40 index closed about 0.3% higher.</p>



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



<p>Asia shares rose on Thursday, tracking gains on Wall Street following a see-saw session, while U.S. Treasury yields came under pressure after mixed economic data.</p>



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



<p>All three major stock indexes closed higher on Wednesday, rebounding from declines earlier in the session as investors brushed off disappointing Alphabet earnings and weighed the prospect of future interest rate cuts from the U.S. Federal Reserve.</p>



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



<p>Gold prices edged higher on Thursday, hovering near record highs hit in the previous session, as tensions in the China-U.S. trade war lifted safe-haven demand, while investors awaited the U.S. jobs data for clues on the future direction of interest rates.</p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



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



<p>&#8211; SA sets bold growth target, strips NHI from draft planning document</p>



<p>&#8211; Trump&#8217;s aid freeze puts more than 15,000 healthcare posts on the line, Motsoaledi says</p>



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



<p>&#8211; Mining sector warns of growing water crisis, urges partnership with government</p>



<p>&#8211; Musk&#8217;s SpaceX a no-show at public hearing on SA satellite rules</p>



<p>(Compiled by Sfundo Parakozov)</p>


istockphoto-1076949610-612×612-1-2

South African Markets – Factors to watch on February 6


<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>



<p>NAIROBI, Feb 6 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.</p>



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



<p>*Uganda&#8217;s and Zimbabwe&#8217;s central banks to announce their latest respective benchmark lending rate decisions.</p>



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



<p>Asia shares rose on Thursday, tracking gains on Wall Street following a see-saw session, while U.S. Treasury yields came under pressure after mixed economic data.</p>



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



<p>Oil prices ticked up in early Asian trading on Thursday, steadying from a sell-off the previous day after Saudi Arabia&#8217;s state oil company sharply raised March oil prices.</p>



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



<p>South Africa&#8217;s rand gained against a weaker dollar on Wednesday, as investors awaited President Cyril Ramaphosa&#8217;s national address on Thursday and closely watched developments between the U.S. and China in their dispute over tariffs.</p>



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



<p>Nigeria&#8217;s President Bola Tinubu has increased the size of the 2025 budget to 54.2 trillion naira ($36.4 billion) from 49 trillion naira, he said in a letter to the Senate published on Wednesday.</p>



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



<p>Kenya&#8217;s shilling was unchanged against the dollar on Wednesday, data from the London Stock Exchange Group showed.</p>



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



<p>Kenya&#8217;s central bank cut its main interest rate for the fourth meeting in a row on Wednesday, saying it wanted to do more to support lending and boost economic growth.</p>



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



<p>Kenya has already started talks with International Monetary Fund officials to secure a new lending program when the current one expires in April, its finance minister told Reuters on Wednesday.</p>



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



<p>Kenya&#8217;s private sector activity expanded for a fourth straight month in January but only modestly and at a slower pace than in December, a survey showed on Wednesday.</p>



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



<p>Rwandan-backed M23 rebels have seized control of a mining town in eastern Democratic Republic of Congo&#8217;s South Kivu province, eight sources said on Wednesday, in an apparent violation of a unilateral ceasefire they declared this week.</p>



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



<p>Cocoa arrivals at official Ghanaian warehouses neared 550,000 metric tons by end-January, putting the world&#8217;s No. 2 producer within reach of its output target for this season, said a source with access to data from sector regulator Cocobod.</p>



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



<p>A new mining law in Mali that raises taxes and seeks to hand over big stakes in assets to the state and local investors will need to be loosened up if gold companies are to invest in new projects there, company CEOs told Reuters.</p>



<h2 class="wp-block-heading" id="h-namibia-petroleum">NAMIBIA PETROLEUM</h2>



<p>French oil major TotalEnergies expects to take a final investment decision (FID) on its Namibian offshore oil discovery in 2026, CEO Patrick Pouyanne said on Wednesday at a press briefing.</p>



<p>((Compiled by Nairobi Newsroom))</p>


World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Feb 6


<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/ZQW3IQWM3JIBJJZB3I5KOZGR4I.avif" alt="" class="wp-image-583114"/><figcaption class="wp-element-caption">U.S. Secretary of State Marco Rubio speaks after a tour of a migrant return center and a demonstration of a dog trained to sniff out narcotics, at La Aurora International Airport in Guatemala City, February 5, 2025. Mark Schiefelbein/Pool via REUTERS</figcaption></figure>



<p>WASHINGTON, Feb 5 (Reuters) &#8211; U.S. Secretary of State Marco Rubio will not attend an upcoming G20 meeting in South Africa, the top U.S. diplomat said on Wednesday, days after President Donald Trump threatened to cut off funding to the African country.</p>



<p>South Africa will host a meeting of foreign ministers of the G20 group of countries from February 20-21 in Johannesburg. South Africa has the G20 presidency from December 2024 to November 2025.</p>



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



<p>Trump said on Sunday, without citing evidence, that &#8220;South Africa is confiscating land&#8221; and &#8220;certain classes of people&#8221; were being treated &#8220;very badly&#8221;. He said he would cut funding until the matter was investigated.</p>



<p>President Cyril Ramaphosa defended South Africa&#8217;s land policy after Trump&#8217;s threat, saying the government had not confiscated any land and the policy was aimed at ensuring equitable public access to land.</p>



<h2 class="wp-block-heading" id="h-key-quotes">KEY QUOTES</h2>



<p>&#8220;South Africa is doing very bad things. Expropriating private property. Using G20 to promote solidarity, equality, &amp; sustainability. In other words: DEI and climate change,&#8221; Rubio said in his post on X, without giving details.</p>



<p>South Africa&#8217;s foreign ministry said in response to Rubio&#8217;s post that &#8220;there is no arbitrary dispossession of land / private property. This law is similar to the Eminent domain laws.&#8221;</p>



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



<p>Trump has complained about South Africa&#8217;s land policy. South African-born billionaire Elon Musk, who is close to Trump, also accused South Africa, without evidence, of having &#8220;openly racist ownership laws&#8221;, suggesting white people were the victims.</p>



<p>The question of land ownership is highly politically charged in South Africa due to the legacy of the colonial and apartheid eras when Black people were dispossessed of their lands and denied property rights.</p>



<p>White landowners still possess&nbsp;three-quarters&nbsp;of South Africa&#8217;s freehold farmland. This contrasts with 4% owned by Black people, who make up 80% of the population compared with about 8% for whites, according to the latest 2017 land audit.</p>



<p>Partly in an effort to redress this imbalance, Ramaphosa signed a law last month allowing the state to expropriate land &#8220;in the public interest&#8221;.</p>



<p>The Trump administration has attempted to dismantle diversity, equity and inclusion programs across the U.S. government. Rights groups say DEI programs help deal with inequities faced by marginalized groups. Trump calls DEI anti-merit.</p>



<p>(Reporting by Kanishka Singh and Jasper Ward in Washington; Additional reporting by Olivia Kumwenda-Mtambo in Johannesburg; Editing by Sandra Maler, Michael Perry and Saad Sayeed)</p>


ZQW3IQWM3JIBJJZB3I5KOZGR4I

US top diplomat Rubio will not attend G20 meeting in South Africa

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Singapore Airlines CEO shares how he is staying ahead of the competition

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<p>Several major property insurance companies, including the state&#8217;s largest insurer, State Farm, announced pullbacks in coverage in recent years. Some have restricted underwriting in high-risk ZIP codes, others have pulled out of the state all together. Homeowners who have lost their home insurance are largely turning to what is called the &#8216;insurer of last resort&#8217;, the California FAIR Plan.</p>
<p>Watch the full video to learn how state regulators are working with insurers to deliver coverage back to homeowners: https://youtu.be/klEgakT56c0&#8230;</p>


Why the U.S. has a home insurance crisis


<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>



<p>NAIROBI, Feb 5 (Reuters) &#8211; Kenya&#8217;s central bank cut its benchmark lending rate by 50 basis points to 10.75% on Wednesday, its monetary policy committee said.</p>



<p>The decision was in line with the forecast of a Reuters poll of four economists.</p>



<p>The central bank also cut banks&#8217; Cash Reserve Ratio by 100 basis points to 3.25% to support a lowering of lending rates, the committee said in a statement.</p>



<p>(Reporting by George Obulutsa; Editing by Alexander Winning)</p>


XRWAJLZOAVK3DL2J5JMRWBBQ6A

Kenya central bank cuts main lending rate to 10.75%


<p><em>Together, the mining industry and the banking and finance sector can power Africa’s economic growth</em></p>



<p>If there is one industry that can catalyse a fulsome transformation of African nations’ economies, it is mining.</p>



<p>This has been said before, and applied too, in the context of envisaging economic growth in countries on other continents. But our present time is different. The world is at the watershed of an energy switchover the impacts of which may be as dramatic as was the birth of the oil industry 150 years ago. Almost all forecasts linked to, or spinning from, the green energy transition, include escalating global demand for the metals and minerals embedded within Africa’s crust.</p>



<p>Mining already comprises a significant proportion of the Gross Domestic Product (GDP) of many sub-Saharan African nations. In Zambia, for instance, the industry’s contribution to total GDP has ranged between 13% to 19% over the past five years. Major global mining conglomerates including Anglo American, First Quantum Minerals (FQM), Glencore and Vedanta Resources not only have prominent existing operations in Zambia but are embarking upon major expansion projects or have announced significant new exploration ventures.</p>



<p>Political and business leaders throughout the world understand the motivation for this. Renewable energy technologies require copper – much more of it. Worldwide copper demand will surge to over 30 million tonnes by the end of the decade, with an overall market value projected at USD 260 billion. Tied to the ongoing momentum of renewables and related industries, rapid growth is forecast through to 2050, by which time the global copper market will have grown 70% since 2020. Zambia’s Copperbelt and North- Western provinces are one of the world’s richest source of known reserves and estimated future discoveries.</p>



<p>Albeit clearcut, and vital, copper is just one illustration. Similar forecasting and financial and market size modelling applies to other metals and minerals also important for net zero emissions targets and a future for humankind that does not rely on fossil fuels. In particular, cobalt, lithium and nickel are crucial for electric batteries and vehicles, for solar panels, turbines, and energy storage. Figuratively speaking, southern Africa is almost certainly sitting on a new-wave, 21st -century goldmine.</p>



<p>Looking wider, the Lobito Trans-Africa Corridor project is a joint U.S., Angola, DRC, Tanzania and Zambia scheme to link logistics infrastructure from east to west, connecting the Indian and Atlantic oceans.</p>



<p>Even grander is the Vision 2030 idea, backed by rulers and business leaders in the Arabian Peninsula, of a mining super-region spanning Africa and the Gulf. This could be a pan-African, pan-Arabian version of China’s modern-day Silk Road. As such, on top of commodity market optimism, in place already are big-picture ideas and visions upon which Africa’s miners can capitalise.</p>



<p>However, a note of cautionary realism is relevant. Mining industry players in Africa should not expect this global projected growth trajectory to materialise easily or to apply by default to their operations on the continent. Chile remains the world’s largest single copper producing nation, while rare earth metals market share and known reserves are dominated by China. This means that strategies are required to shift the balance – effectively, to improve African mining’s productivity by gearing competitiveness. Successfully operationalising these strategies will be the key to seizing market share as opposed to inching upwards as the market grows. A sea-change in the fortunes of African countries’ economies depends on the former.<br>But this will involve overcoming multiple challenges. </p>



<p>First and foremost, shall we address the elephant in the room? C-Suite and senior leadership must engage honestly with the issue of purposefully and meaningfully contributing to the economic prosperity of countries hosting their operations. ESG is mandatory, and is elegantly written about in multiple pages of all mining companies’ annual reports. But – remembering that an uplifted local community, a higher-performing region, and a stronger national economy grows the economic pie, benefitting the mining industry – can more be done?</p>



<p>Here, it is opportune to cross-refer to the role of the financial sector. Its ambit includes assisting with compliance issues. Mining companies understandably face rigorous scrutiny by governments and regulatory authorities. Banks, in collaboration with auditors and legal, can help to ensure full and proper compliance, thereby smoothing processes. Governments do understand the importance of industry growth. Zambia is a case in point: President Hichilema has laid out his government’s target of three million tonnes of annual copper production by the early-2030s.&nbsp; A partnership approach will best enable the industry to achieve this; if mining houses demand policies that raise investor confidence, they must hold up their end of the<br>compliance deal.&nbsp;</p>



<p>From that foundation, finance has a further, fundamental role: capital. “The capitalist revolution Africa needs,” blared the headline of a recent feature in The Economist. Some of the article’s statistics and projections are worrying, painting the picture of a continent-wide lag in education levels, digitisation and infrastructure, and corporate scale. Governments are at fault for much poor policy that has contributed to this. But two things can be simultaneously true: the global financial architecture has largely been prejudicial, and the UN’s 4th International Conference on Financing for Development, scheduled for June this year, is overdue. In the spirit of optimism, systemic change is hopefully around the corner. After all, for capitalism to thrive, capital is needed!</p>



<p>In the interim, the green shoots of mining industry expansion in Africa are clearly visible. The banking and financial sector is positioned to encourage and facilitate investment. We see ourselves as partners to one of the continent’s key engines, and feel certain that decisionmakers in both industries are asking the same primary question: “Where can we add value to the country’s economy, and contribute to greater prosperity, by catalysing growth?”</p>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="800" height="800" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Mukwandi-chibesakunda-ZANACO-800x800.jpg" alt="" class="wp-image-582831" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Mukwandi-chibesakunda-ZANACO-800x800.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Mukwandi-chibesakunda-ZANACO-300x300.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Mukwandi-chibesakunda-ZANACO-90x90.jpg 90w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Mukwandi-chibesakunda-ZANACO-768x768.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption"><em>Chibesakunda has served in multiple senior roles in the banking industry for over 20 years. She is the CEO of Zambia’s largest bank, Zambia National Commercial Bank (Zanaco).</em></figcaption></figure></div>

Mukwandi-chibesakunda-ZANACO

Mining in Africa: On the cusp of a new boom?


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-820x547.jpg" alt="" class="wp-image-529685" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE3RFSDQENJTFFYC6SW6PIPCBE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington, U.S., April 8, 2019. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



<p>NAIROBI, Feb 5 (Reuters)&nbsp;&#8211;&nbsp;Kenya has already started talks with International Monetary Fund officials to secure a new lending program when the current one expires in April, its finance minister told Reuters on Wednesday.</p>



<p>The East African nation needs continued support from the Washington, D.C.-based lender to keep its economy on track, Finance Minister John Mbadi said in an interview.</p>



<p>Kenya&#8217;s debt-servicing costs have surged due to a borrowing spree over the past decade, while it abandoned a plan to raise revenue via tax hikes last year in the wake of deadly protests.</p>



<p>&#8220;Maybe before the current program comes to a close in April, there should be some indicators whether we are starting a new program and what that new program will entail,&#8221; he said.</p>



<p>A $1.5 billion commercial loan from the United Arab Emirates, at an 8.25% interest rate, was still an option for the government to fund its budget this fiscal year, he said, but they are also considering other sources, including issuing a Eurobond.</p>



<p>&#8220;We have the option of taking that&#8230; or we go to the market which is open now, and with our good and positive credit,&#8221; he said.</p>



<p>The decision by the administration of U.S. President Donald Trump to freeze foreign aid could hit Kenya hard, as it lacks the fiscal space to replace the funding, Mbadi said, adding that he hoped the United States would reconsider.</p>



<p>&#8220;We don&#8217;t have that fiscal space&#8230; We will have to rearrange the budget and rechannel the domestic resources,&#8221; he said.</p>



<p>(Reporting by Duncan Miriri, editing by Libby George and Hugh Lawson)</p>


FILE PHOTO: The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington

Kenya has begun talks with IMF for new lending program, finance minister says

<p><iframe loading="lazy" src="https://www.youtube.com/embed/CP-C2cgWL2Q" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>Max Tegmark&#8217;s Future of Life Institute has called for a pause on the development on advanced AI systems. Tegmark is concerned that the world is moving toward artificial intelligence that can&#8217;t be controlled, one that could pose an existential threat to humanity. Yoshua Bengio, often dubbed as one of the &quot;godfathers of AI&quot; shares similar c&#8230;</p>


Fears around uncontrollable AI are growing — two top AI scientists explain why


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/RXHBRIN7LJNSFFFWOTPXXEJNUY-1.avif" alt="" class="wp-image-582810"/><figcaption class="wp-element-caption">The TotalEnergies logo sits on the company&#8217;s headquarter skyscraper in the La Defense business district in Paris, France, March 24, 2022. REUTERS/Benoit Tessier/File Photo</figcaption></figure>



<p>PARIS, Feb 5 (Reuters)&nbsp;&#8211;&nbsp;TotalEnergies&nbsp;TTEF.PA&nbsp;CEO Patrick Pouyanne said on Wednesday that financing from the United States for its $20 billion Mozambique LNG project is expected to be approved in coming weeks, with other credit agencies to follow in the months after.</p>



<p>The company is waiting for loan re-approvals from the United States, UK and Dutch export credit agencies before lifting a force majeure on the project that has been in place since 2021.</p>



<p>Speaking to journalists after reporting fourth-quarter earnings, Pouyanne said he expected a prior loan approval to be restored fairly quickly under the Trump administration.</p>



<p>He added that the project completion date would need to be pushed back to 2029-2030, from a previously planned 2027.</p>



<p>The U.S. Export-Import Bank had previously agreed a $4.7 billion loan for the project but it needs to be re-approved, after construction on the project was frozen in 2021 due to violent unrest in the northern Cabo Delgado region near the project site — before any disbursements were made.</p>



<p>Pouyanne said that Britain, which has pledged around $800 million to $1 billion, is looking to see if it has a legal right to exit, but noted it had already signed a contract on the financing.</p>



<p>&#8220;I am waiting to see how they will explain it to us,&#8221; he said.</p>



<p>(Reporting by Benjamin Mallet and America Hernandez. Writing by Dominique Patton; Editing by Emelia Sithole-Matarise)</p>


RXHBRIN7LJNSFFFWOTPXXEJNUY

TotalEnergies CEO says US financing for Mozambique LNG project expected in coming weeks

On American aid cuts/disruptions


<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/RXHBRIN7LJNSFFFWOTPXXEJNUY.avif" alt="" class="wp-image-582774"/><figcaption class="wp-element-caption">The TotalEnergies logo sits on the company&#8217;s headquarter skyscraper in the La Defense business district in Paris, France, March 24, 2022. REUTERS/Benoit Tessier/File Photo</figcaption></figure>



<p>PARIS, Feb 5 (Reuters)&nbsp;&#8211;&nbsp;French oil major TotalEnergies expects to take a final investment decision (FID) on its Namibian offshore oil discovery in 2026, CEO Patrick Pouyanne said on Wednesday at a press briefing.</p>



<p>The development would have a production capacity of 150,000 barrels per day, down from an initial 160,000 barrels per day discussed at its investor day in October.</p>



<p>Pouyanne had previously targeted the end of 2025 for a decision on FID at a results call last April.</p>



<p>The French oil major has said it is struggling to achieve breakeven at under $20 per barrel, an internal requirement for FID.</p>



<p>Promising offshore discoveries in Namibia, which has no oil and gas production, have been complicated by a high amount of gas that will make development more expensive.</p>



<p>Last month Shell wrote down its Namibian discoveries, while Chevron declared its initial findings commercially unviable.</p>



<p>(Reporting by America Hernandez and Benjamin Mallet in Paris, Editing by Louise Heavens and Emelia Sithole-Matarise)</p>


TotalEnergies’ Namibia project seen smaller, later than expected


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU-820x429.jpg" alt="" class="wp-image-527123" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A small toy figure and gold imitation are seen in front of the Harmony logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration</figcaption></figure>



<p>Feb 5 (Reuters) &#8211; Five people were killed in incidents at two of Harmony Gold&#8217;s South African mines, the company reported on Wednesday.</p>



<p>Three employees died on Tuesday after a collapse at Joel Mine in the Free State province, about 290 km (180 miles) southwest of Johannesburg, Harmony said in a statement.</p>



<p>Two other employees died in another incident on Tuesday morning at Doornkop Mine, 30 km (19 miles) west of Johannesburg, the company said.</p>



<p>Harmony, South Africa&#8217;s top gold producer, said the causes of the two incidents were being investigated.</p>



<p>South Africa&#8217;s mining industry reported 42 deaths last year, the lowest number to date and a 24% improvement on the previous year, according to official statistics released last month.</p>



<p>In January, the bodies of 78 miners were pulled from an illegal gold mine after a heavily-criticised police operation lasting several months that tried to force them to the surface.</p>



<p>(Reporting by Nelson Banya; Editing by Ros Russell)</p>


https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU

South Africa’s Harmony Gold reports five deaths at two mines


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="471" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/SA-INFLATION.avif" alt="" class="wp-image-524647"/><figcaption class="wp-element-caption">Shoppers look for items as they shop at an outlet of retailer Checkers in Sandton City mall, in Sandton, South Africa, August 28, 2024. REUTERS/Lelethu Madikane </figcaption></figure>



<p>JOHANNESBURG, Feb 5 (Reuters)&nbsp;&#8211;&nbsp;South African private sector activity contracted sharply in January as output fell due to lower sales, a survey showed on Wednesday.</p>



<p>The S&amp;P Global South Africa Purchasing Managers&#8217; Index (PMI) fell to 47.4 in January from 49.9 in December, its lowest since July 2021. A reading above 50 shows growth.</p>



<p>&#8220;New orders dropped solidly, leading to a marked cutback in output, with weakness especially observed among service sector businesses,&#8221; said David Owen, senior economist at S&amp;P Global Market Intelligence.</p>



<p>The findings suggest companies struggled to win back customers at the start of the year, which could affect growth in the first quarter, Owen said.</p>



<p>Despite the downturn, the survey showed domestic supply chains improved, with some respondents suggesting that the drop-off in demand provided vendors with additional capacity and eased bottlenecks.</p>



<p>(Reporting by Bhargav Acharya; Editing by Christina Fincher)</p>


SA INFLATION

South Africa business activity contracts again in January, PMI shows


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3035" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/CXYS7WC5YRPUPNY2HNXRUOQOYQ.avif" alt="" class="wp-image-582750"/><figcaption class="wp-element-caption">An aerial view shows the skyline of downtown in Nairobi, Kenya October 8, 2024. Picture taken on October 8, 2024. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



<p>NAIROBI, Feb 5 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s private sector activity expanded for a fourth straight month in January but only modestly and at a slower pace than in December, a survey showed on Wednesday.</p>



<p>The Stanbic Bank Kenya Purchasing Managers&#8217; Index (PMI) slipped to 50.5 in January from 50.6 a month earlier. Readings above 50.0 signal an expansion in activity.</p>



<p>&#8220;The index was above the 50.0 neutral mark for the fourth successive month, thereby extending the current period of private sector growth,&#8221; Stanbic Bank said in comments accompanying the survey.</p>



<p>In January, the finance ministry estimated growth slowed to 4.6% in 2024 from 5.6 percent in 2023 but predicted it would pick up this year.</p>



<p>Inflation rose in January, reaching 3.3% year-on-year from 3.0% a month earlier, data from the statistics office showed.</p>



<p>&#8220;Kenyan businesses reported an increase in purchase prices for imported commodities, albeit a slower one than the preceding month, still attributed to higher taxes,&#8221; said Christopher Legilisho, an economist at Stanbic Bank.</p>



<p>&#8220;Output prices increased but less briskly,&#8221; he added. &#8220;We would therefore foresee a slight easing in inflationary pressure during January than was the case in December.&#8221;</p>



<p>(Reporting by George Obulutsa; Editing by Christina Fincher)</p>


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South African rand weakens; traders focus on president’s address

ArcelorMittal South Africa delays long-steel plant closure amid government talks

South African Markets – Factors to watch on February 6

African Markets – Factors to watch on Feb 6

US top diplomat Rubio will not attend G20 meeting in South Africa

Singapore Airlines CEO shares how he is staying ahead of the competition

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Mining in Africa: On the cusp of a new boom?

Kenya has begun talks with IMF for new lending program, finance minister says

Fears around uncontrollable AI are growing — two top AI scientists explain why

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On American aid cuts/disruptions

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South Africa business activity contracts again in January, PMI shows

Kenya private sector activity expands weakly in January, PMI shows

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