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DeepSeek: Has a Chinese company opened a new chapter for AI?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/40205162585_b9b3656642_b-820x547.jpg" alt="" class="wp-image-580770" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/40205162585_b9b3656642_b-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/40205162585_b9b3656642_b-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/40205162585_b9b3656642_b-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/40205162585_b9b3656642_b-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/40205162585_b9b3656642_b.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



The race to lead the African Development Bank (AfDB) picked up pace this week as the Zambian, Senegalese and Mauritanian candidates pledged to boost faster development of the world’s poorest continent.



Ex-World Bank senior official Samuel Maimbo of Zambia formally launched his campaign today and will fight it out against Senegal’s Amadou Hott, the special envoy of the bank’s Alliance for Green Infrastructure in Africa, and Mauritania’s Sidi OuldTah, former Director General of the Arab Bank for Economic Development in Africa.



Since assuming leadership of the African Development Bank in 2015, Akinwumi Adesina, a former Nigerian agriculture minister whose term ends in October, has championed Africa’s agriculture as a unique investment opportunity and last week, together with the World Bank, launched an $8 billion drive to provide power to 300 million Africans.



Announcing a candidacy he said was backed by the Southern African Development Community (SADC) and the Community for Eastern and Southern African States (COMESA), Maimbo said Africa needed bold leadership to achieve this, citing his role in helping raise a $90 billion financing package under the International Development Association replenishment.



“Africa stands at a critical juncture,” Maimbo said in a statement from Lusaka, Zambia. “We need to get one billion people to work as quickly as possible by strategically supporting the industries that will improve livelihoods and ignite prosperity on our continent.’’



The AfDB, the only African financial institution rated triple A by Moody’s, Standard &amp; Poor’s and Fitch, selects a new leader next May to replace Nigeria’s Adesina who is not eligible to run again under the bank’s constitution.



Maimbo is bidding to become the second Zambian to hold the Presidency after compatriot Wila Mungomba, who led for a single term between 1980 and 1985. Senegal’s Babacar Ndiaye succeeded him and served two terms till 1995 when Morocco’s Omar Kabbaj took over, also serving two terms. Rwanda’s Donald Kaberuka succeeded him from 2005, also for two terms before Adesina’s arrival.



South Africa, Africa’s largest economy and the bank’s third largest African shareholder after Nigeria and Egypt, initially backed its national Bajabulile Tshabalala, a former Vice President of the Bank,&nbsp;before the Presidency publicly withdrew the support and threw its weight behind Maimbo as the SADC candidate.



Tanzania’s Frannie Leautier, CEO of Kigali based Southbridge Capital and also a former Vice President of the bank, had also been tipped to be in the running but may also have fallen victim to the SADC consensus on Maimbo.&nbsp;



Maimbo says his presidency will focus on boosting Africa’s share of global trade from the current 3 percent by unifying the efforts of its 1.4 billion people, strengthening regional markets and modernizing the continent’s infrastructure and agriculture while accelerating energy access in a region where almost two thirds of the population has no access to electricity.



“Africa needs significantly higher rates of growth to successfully navigate today’s development challenges and capture tomorrow’s opportunities,” he said. “I’m ready on day one to support governments in reaching their goals. It’s time to stop talking about Africa’s potential and start realizing it.”



Maimbo’s recently served as the Vice President of Budget, Performance Review, and Strategic Planning at the World Bank where he also served as Chief of Staff to successive World Bank Presidents. The election will be held on May 29 at the bank’s headquarters in Abidjan, commercial capital of Cote D’Ivoire.

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Race to lead Africa’s top development finance institution hots up

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="779" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_Z2U72NBTFJOA7NYCF4R6FI2NFM.avif" alt="" class="wp-image-580922"/><figcaption class="wp-element-caption">Maria Modiba cooks by a candlelight during one of the frequent power outages from South African utility Eskom, caused by its aging coal-fired plants, in Soweto, South Africa November 11, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Jan 31 (Reuters)&nbsp;&#8211;&nbsp;South African businesses and households will experience scheduled power cuts for the first time in 10 months due to a series of breakdowns at state power utility Eskom&#8217;s coal-fired power stations, officials said on Friday.



Energy minister Kgosientsho Ramokgopa told reporters that Eskom would implement &#8220;Stage 3&#8221; power cuts.



The outages will require up to 3,000 megawatts (MW) to be shed from the grid, starting from 1700 (1500 GMT) on Friday.



The utility&#8217;s power cuts, known locally as loadshedding, have curbed South Africa&#8217;s economic growth for more than a decade.



But there had been no blackouts since March last year after a dramatic turnaround in Eskom&#8217;s electricity supply, leading to over 300 days without outages.



(Reporting by Tannur Anders, Sfundo Parakozov and Bhargav Acharya; Editing by Alexander Winning)

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South African power cuts return after 10 months of uninterrupted supply

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/J7ZZIHSEAFKQJBMLXDXRGA7KCQ.avif" alt="" class="wp-image-580859"/><figcaption class="wp-element-caption">U.S. President Donald Trump signs executive orders in the Oval Office at the White House in Washington, U.S., January 30, 2025. REUTERS/Elizabeth Frantz</figcaption></figure>



Jan 30 (Reuters)&nbsp;&#8211;&nbsp;President Donald Trump on Thursday warned off BRICS member countries from replacing the U.S. dollar as a reserve currency by repeating a 100%-tariffs threat he had made weeks after winning the November presidential elections.



&#8220;We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs,&#8221; Trump said on Truth Social in a statement nearly identical to one he posted on Nov. 30.



At the time, Russia said that any U.S. attempt to compel countries to use the dollar would backfire.



The BRICS grouping includes Brazil, Russia, India, China, and South Africa and a few other countries that joined in the past couple of year. The grouping does not have a common currency, but long-running discussions on the subject have gained some momentum after the West imposed sanctions on Russia over the war in Ukraine.



&#8220;There is no chance that BRICS will replace the U.S. Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!,&#8221; he said.



Trump posted his warning to the BRICS as Canada and Mexico await for his decision to follow through on a pledge to impose 25% tariffs on the United States&#8217; North American trading partner from Feb. 1.



Trump wants to use tariffs as a tool to get Mexico and Canada to help stem the flow of illegal drugs into the United States, particularly the deadly opioid fentanyl, and also migrants crossing illegally into the U.S.



Dollar dominance — the outsized role of the U.S. dollar in the world economy — has strengthened of late, thanks to the robust U.S. economy, tighter monetary policy and heightened geopolitical risks, even as economic fragmentation has boosted a push by BRICS countries to shift away from the dollar into other currencies.



A study by the Atlantic Council&#8217;s GeoEconomics Center last year showed that the U.S. dollar remains the world&#8217;s primary reserve currency, and neither the euro nor the so-called BRICS countries have been able to reduce global reliance on the dollar.



The acronym BRIC, which did not initially include South Africa, was coined in 2001 by then Goldman Sachs chief economist Jim O&#8217;Neill in a research paper that underlined the growth potential of Brazil, Russia, India and China.



The bloc was founded as an informal club in 2009 to provide a platform for its members to challenge a world order dominated by the United States and its Western allies. South Africa was the first beneficiary of an expansion of the bloc in 2010 when the grouping became known as BRICS.



The group added Egypt, Ethiopia, Iran and the United Arab Emirates in 2023, and Indonesia became member earlier this month.



(Reporting by Kanishka Singh and Ismail Shakil; Editing by Sandra Maler and Michael Perry)

J7ZZIHSEAFKQJBMLXDXRGA7KCQ

Trump repeats tariffs threat to dissuade BRICS nations from replacing US dollar

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/E6VGTQJGT5PWVIY65GTH6X443Q-1-820x547.jpg" alt="" class="wp-image-580544" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/E6VGTQJGT5PWVIY65GTH6X443Q-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/E6VGTQJGT5PWVIY65GTH6X443Q-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/E6VGTQJGT5PWVIY65GTH6X443Q-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/E6VGTQJGT5PWVIY65GTH6X443Q-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/E6VGTQJGT5PWVIY65GTH6X443Q-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/E6VGTQJGT5PWVIY65GTH6X443Q-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Governor of the South African Reserve Bank, Lesetja Kganyago, gestures during an interview with Reuters in Centurion, South Africa April 3, 2024 REUTERS/James Oatway/File Photo</figcaption></figure>



PRETORIA, Jan 30 (Reuters)&nbsp;&#8211;&nbsp;Below are some quotes from South African Reserve Bank Governor Lesetja Kganyago at a news conference to announce the central bank&#8217;s latest interest rate decision.



<h2 class="wp-block-heading" id="h-inflation">INFLATION</h2>



&#8220;Moving to consumer prices, headline inflation averaged 4.4% last year, near the middle of our target range. Inflation slowed to 3% in December, having started the year above 5%.&#8221;



&#8220;This was mainly due to favourable goods-price developments, including food inflation reaching 15-year lows, as well as lower fuel costs.&#8221;



&#8220;Because of these transitory factors, inflation is likely to remain in the bottom half of our target range through the first half of this year.&#8221;



&#8220;Headline inflation should revert to around 4.5% thereafter, aided by core inflation which remains at or below the midpoint over the forecast horizon.&#8221;



&#8220;The risks to the inflation outlook are assessed to the upside.&#8221;



&#8220;In the near term, inflation appears well contained. However, the medium-term outlook is more uncertain than usual, with material risks from the external environment. Domestic factors such as administered prices are also problematic.&#8221;



<h2 class="wp-block-heading" id="h-economic-growth">ECONOMIC GROWTH</h2>



&#8220;For the fourth quarter, we anticipate a rebound. This will be supported by more normal agricultural production, as well as strong household spending, given tailwinds including lower inflation and Two-Pot pension withdrawals.&#8221;



&#8220;We expect potential growth to trend higher over the next few years. This gets growth to about 2% by 2027.&#8221;



&#8220;As growth picks up, we expect some rebalancing, with a recovery in investment, as well as improvements in the primary and secondary sectors.&#8221;



&#8220;The risks to the growth forecast are assessed as balanced.&#8221;



<h2 class="wp-block-heading" id="h-decision">DECISION</h2>



&#8220;The Monetary Policy Committee (MPC) decided to reduce the policy rate by 25 basis points, with effect from 31 January 2025. Four members preferred this action, while two supported an unchanged stance.&#8221;



&#8220;The committee ultimately agreed that it was possible to reduce the degree of policy restrictiveness, making the stance somewhat more neutral. However, all members were concerned about the uncertain global outlook.&#8221;



(Compiled by Sfundo Parakozov; Editing by Alexander Winning)

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South African central bank governor’s comments on rate decision

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3253" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/37FGDAI5XNJEHG5XRZ5GUCM4NU.avif" alt="" class="wp-image-580498"/><figcaption class="wp-element-caption">A man rises a Nigeria Labour Congress flag during a protest rally on closure of Nigerian Universities at the National Assembly complex in Abuja, Nigeria July 27, 2022. REUTERS/Afolabi Sotunde </figcaption></figure>



ABUJA, Jan 30 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s main labour union has rejected a government-approved 50% hike in telecommunications tariffs and announced plans for a nationwide protest on Feb. 4.



The telecoms regulator last week approved the increase in mobile tariffs, the first such hike in more than a decade, bowing to pressure from operators struggling with surging costs amid high inflation and currency devaluation.



In a meeting of the Nigeria Labour Congress (NLC) late on Wednesday, union leaders called the increase &#8220;insensitive, unjustifiable, and a direct assault&#8221; on citizens already grappling with the worst cost-of-living crisis in a generation caused by reforms instituted by President Bola Tinubu.



&#8220;The rally will serve as a warning on the dangers of imposing such an unfair increase on a struggling population, NLC President Joe Ajaero said in a statement, citing high food costs and hikes in the prices of petrol and electricity.



The union demanded the immediate suspension of the tariff adjustment and called for dialogue between the government, the regulator and union leaders.



Ajaero threatened a nationwide boycott of telecommunications services and a possible strike if authorities refused to engage in dialogue.



The NLC, representing millions of workers, has repeatedly clashed with the government over economic reforms which it says exacerbate poverty, but officials argue the measures are necessary to stabilise the economy.



(Reporting by Camillus Eboh; Writing by Elisha Bala-Gbogbo; Editing by Kirsten Donovan)

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Nigeria union rejects telecom tariff hike, plans nationwide protest

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4372" height="2922" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/KEDTHZFAYBM77J7WBYLECY5O4E.avif" alt="" class="wp-image-580466"/><figcaption class="wp-element-caption">Members of the M23 rebel group gather at their position amid fighting between them and the Armed Forces of the Democratic Republic of the Congo (FARDC), in Goma, eastern Democratic Republic of the Congo, January 29, 2025. REUTERS/Stringer</figcaption></figure>



LONDON, Jan 30 (Reuters) &#8211; Britain has warned Rwanda that its involvement in an escalating conflict in the Democratic Republic of Congo could jeopardise the over $1 billion of aid it receives every year.



Rwanda-backed M23 rebels captured Goma, a city of 2 million people in the DRC, on Monday, ignoring widespread calls for them to halt their offensive and enact a ceasefire. They extended their advance on Wednesday.



Rwandan forces backed up M23 in Goma, according to Congo, the United States and other Western powers. Rwanda has denied its involvement.



British foreign minister David Lammy told parliament on Tuesday Rwanda received over 1 billion dollars in global aid every year, including around 32 million pounds ($39.80 million) of bilateral UK assistance but &#8220;all of that is under threat when you attack your neighbours&#8221;.



&#8220;We in this House are clear that we cannot have countries challenging the territorial integrity of other countries,&#8221; Lammy said. &#8220;Just as we will not tolerate it in the continent of Europe, we cannot tolerate it wherever in the world it happens.&#8221;



&#8220;We have to be clear about that,&#8221; Lammy added.



This week&#8217;s events represent the gravest escalation of the decades-old conflict in eastern Congo since 2012. The hostilities are rooted in the spillover of Rwanda&#8217;s 1994 genocide into Congo and the struggle for control of Congo&#8217;s lucrative minerals.



($1 = 0.8040 pounds)



(Reporting by Catarina Demony; Editing by Saad Sayeed)

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UK warns Rwanda of threat to aid over its involvement in DRC conflict

<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>



Jan 30 (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>



Democratic Republic of Congo&#8217;s central bank is expected to hold its first monetary policy committee meeting for the year.



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



Asian share markets rose in thin trading on Thursday as much of the region was on holiday for the Lunar New Year, while the U.S. dollar held its ground after the Federal Reserve signaled a pause in policy easing.



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



Oil prices were little changed on Thursday as markets braced for threatened tariffs by U.S. President Donald Trump on Mexico and Canada, the two largest suppliers of crude oil to United States, and awaited a meeting of OPEC+ producers.



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



South Africa&#8217;s rand was unchanged on Wednesday ahead of an interest rate decision by the U.S. Federal Reserve.



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



The Kenyan shilling was unchanged against the dollar on Wednesday, according to data from the London Stock Exchange Group.



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



As an East African bloc urged an immediate ceasefire in eastern Democratic Republic of Congo, Rwandan-backed M23 rebels who seized the city of Goma extended their advance on Wednesday, and Congo said it planned a campaign to recover lost territory.



<h2 class="wp-block-heading" id="h-south-sudan-crash">SOUTH SUDAN CRASH</h2>



A small aircraft carrying oil workers in South Sudan&#8217;s Unity State crashed on takeoff from its oilfield airport on Wednesday, killing 20 people, the region&#8217;s information minister said.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Jan 30

<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>



JOHANNESBURG, Jan 30 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand was little changed early on Thursday ahead of an interest rate decision by the South African Reserve Bank.



At 0650 GMT, the rand traded at 18.5675 against the dollar, near its previous close of 18.5750.



The dollar was also little changed as markets digested the Federal Reserve&#8217;s decision to hold interest rates steady on Wednesday.



The SARB will announce its first interest rate decision for the year later on Thursday, when it is expected to cut rates by 25 basis points to 7.50% according to economists polled by Reuters.



&#8220;Markets expect a 25bp cut, but recent financial market volatility, a strong ZAR, and Trump-related risks could push the SARB to hold,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



Local investors will also be looking at the December budget balance reading and producer inflation data, which could give clues on the health of Africa&#8217;s most industrialised economy.



South Africa&#8217;s benchmark 2030 government bond was stronger in early deals, with the yield down 1.5 basis points to 8.955%.



(Reporting by Sfundo Parakozov, Editing by Bhargav Acharya and Kate Mayberry)

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South African rand stable ahead of rate decision

<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>



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



South African December money supply data



South Africa December budget balance data



South Africa December producer inflation figures



South African central bank interest rate announcement



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



Energy regulator Nersa&#8217;s decision on Eskom&#8217;s electricity tariffs



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



South Africa&#8217;s rand was unchanged on Wednesday ahead of an interest rate decision by the U.S. Federal Reserve.



On the stock market, the Top-40 was last up about 1%. 



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



Asian share markets were mixed in thin trading on Thursday as much of the region was on holiday for the Lunar New Year, while the U.S. dollar trod water after the Federal Reserve signalled a pause in policy easing.



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



U.S. stocks ended lower on Wednesday, but off their lows of the day, with the Federal Reserve holding interest rates steady as expected and Fed Chair Jerome Powell offering soothing comments for investors. 



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



Gold traded in a relatively narrow price range on Thursday as investors focused on U.S. President Donald Trump&#8217;s tariff plans and a key inflation report for monetary policy cues. 



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



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



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



&#8211; Auditor-general slams Eskom’s continued lack of governance



&#8211; RMB winds down debt sponsor business



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



&#8211; Musk&#8217;s SpaceX says SA&#8217;s BEE rules are a big barrier



(Compiled by Sfundo Parakozov)

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South African Markets – Factors to watch on Jan 30

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108043098-1727989387640-gettyimages-2173579499-META_CONNECT-820x546.jpeg" alt="" class="wp-image-580429" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108043098-1727989387640-gettyimages-2173579499-META_CONNECT-820x546.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108043098-1727989387640-gettyimages-2173579499-META_CONNECT-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108043098-1727989387640-gettyimages-2173579499-META_CONNECT-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108043098-1727989387640-gettyimages-2173579499-META_CONNECT-768x511.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108043098-1727989387640-gettyimages-2173579499-META_CONNECT-1536x1022.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108043098-1727989387640-gettyimages-2173579499-META_CONNECT-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Mark Zuckerberg, CEO of Meta Platforms Inc., arrives for the Meta Connect event in Menlo Park, California, on Sept. 25, 2024. David Paul Morris | Bloomberg | Getty Images</figcaption></figure>



Meta CEO Mark Zuckerberg on Wednesday said it’s too early to tell what impact DeepSeek’s breakthrough AI model will have on his company and the broader tech industry. 



Still, Zuckerberg poured cold water on the notion that Meta’s overall AI spending will soon drop now that DeepSeek has allegedly proven that cutting-edge AI requires far less money and computing resources than previously thought.



“It’s probably too early to really have a strong opinion on what this means for the trajectory around infrastructure and CapEx,” Zuckerberg said. “There are a bunch of trends that are happening here all at once.”



The technology markets were reeling this week over an AI model created by DeepSeek, which is a Hangzhou-based AI lab linked to the Chinese hedge fund High-Flyer. DeepSeek claims it only took two months and less than $6 million to develop its R1 large language model. That news caused Nvidia shares to tank 17% on Monday because of the implications that companies don’t need as many of the chip-maker’s graphics processing units for their own artificial-intelligence projects.



Zuckerberg discussed DeepSeek during a call with analysts Wednesday as part of Meta’s fourth-quarter earnings. The company reported that sales rose 21% year over year to $48.39 billion, ahead of Wall Street expectations.



Meta’s shares rose nearly 2% on Monday, indicating some investors believe DeepSeek’s cost-efficiency could mean the social media company may be able to create powerful AI systems for less money. Meta announced last week plans to invest between $60 billion and $65 billion this year as part of its AI push. The company on Wednesday said its 2025 total expenses would come in between $114 billion to $119 billion.



Zuckerberg said Meta is still digesting some of DeepSeek’s feats and his team hopes to eventually implement some of those advancements for their own AI projects.



“That’s part of the nature of how this works, whether it’s a Chinese competitor or not,” Zuckerberg said, referring to how one company’s advances end up benefiting others.



While it’s possible that companies will eventually require less computing resources to train these powerful models, Zuckerberg said that having a ton of server power may be necessary when the software is actually running and performing actions, resulting in “a higher level of intelligence and a higher quality of service.”



“It’s going to be expensive for us to serve all of these people because we are serving a lot of people,” said Zuckerberg, whose company said it had 3.35 billion daily active people in the fourth quarter.



Meta will continue to learn from technologies like DeepSeek’s and release its own open source and free Llama AI models that can also push the industry, Zuckerberg said.



“I continue to think that investing very heavily in CapEx and infra is going to be a strategic advantage over time,” he said. “It’s possible that we’ll learn otherwise at some point, but I just think it’s way too early to call that, and at this point, I would bet that the ability to build out that kind of infrastructure is going to be a major advantage.”



Zuckerberg also said that DeepSeek’s emergence validates Meta’s commitment to an open-source approach to AI, Zuckerberg said.



“There’s going to be an open-source standard globally,” he said. “For our own national advantage, it’s important that it’s an American standard.”

108043098-1727989387640-gettyimages-2173579499-META_CONNECT

Zuckerberg says Meta won’t slow down AI spend despite DeepSeek’s breakthrough

How Bluesky

How Bluesky, Twitter’s onetime side project, is challenging Elon Musk’s X

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3338" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/A7M7YHTKLZMKZHKW5UBBPCVSYQ.avif" alt="" class="wp-image-580185"/><figcaption class="wp-element-caption">Namibians queue to vote in an the extension of the presidential and national assembly elections after delays on the offical election day earlier this week in Windhoek, Namibia, November 29, 2024. REUTERS/Noah Tjijenda/File Photo</figcaption></figure>



WINDHOEK, Jan 29 (Reuters)&nbsp;&#8211;&nbsp;Namibia&#8217;s unemployment rate rose to 36.9% in 2023 from 33.4% in 2018, the statistics office said on Wednesday.



The country of about three million people has one of the highest official unemployment levels in the world, having overtaken neighbouring South Africa whose unemployment rate fell to 32.1% in the third quarter of 2024 after the formation of a coalition government.



Statistician General Alex Shimuafeni said that 320,442 individuals were employed in Namibia in 2023, of the total 867,247 people in the labour force.



Namibia&#8217;s unemployment rate now excludes discouraged workers, making the actual number of people without jobs higher.



The broader unemployment rate stands at 54.8%, as reported in the 2023 Labour Force report, said Tannan Groenewald, head of data and analytics at Cirrus Capital.



Namibia&#8217;s President-elect Netumbo Nandi-Ndaitwah in December pledged &#8220;radical shifts&#8221; to fix the country&#8217;s high levels of poverty and unemployment.



(Reporting by Nyasha Nyaungwa; Editing by Tannur Anders and Peter Graff)

A7M7YHTKLZMKZHKW5UBBPCVSYQ

Namibia’s unemployment rate rises to 36.9%

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="3460" height="2202" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/JY3IL6MOW5MZZP4PQIU6XATSJE.avif" alt="" class="wp-image-580167"/><figcaption class="wp-element-caption">Delegates attend the Africa Energy Summit in Dar es Salaam, Tanzania January 27, 2025. REUTERS/Emmanuel Herman/File Photo</figcaption></figure>



DAR ES SALAAM, Jan 29 (Reuters)&nbsp;&#8211;&nbsp;An initiative to connect 300 million Africans to electricity in the next six years has won new pledges worth more than $8 billion from lenders including the Islamic Development Bank and the Asia Infrastructure Investment Bank.



The Mission 300 initiative, launched by the World Bank and the African Development Bank in April, is projected to cost $90 billion. Its implementation faces challenges because the economies of countries in the region are severely constrained, mainly due to sluggish revenue and high debt service costs.



&#8220;Our national balance sheets are insufficient&#8230; to achieve Mission 300&#8217;s objectives,&#8221; Zambian President Hakainde Hichilema told an Africa energy summit in Tanzania.



Funding for the project is expected to come from multilateral development banks, development agencies, private businesses and philanthropic organisations such as the Rockefeller Foundation, which is part of the initiative.



Muhammad al Jasser, chairman of the IsDb, said in a statement released during the summit that ended on Tuesday that the Jeddah-headquartered bank was committing $2.65 billion in project financing and another $2 billion to insure power projects in Africa.



Beijing-based AIIB is set to provide $1-1.5 billion in financing.



&#8220;Six hundred million people in Africa without access to electricity is intolerable,&#8221; said AIIB President Jin Liqun.



Others funding the project include the French Development Agency (AFD), which committed to providing 1 billion euros ($1.04 billion), and the OPEC Fund for International Development, which made an initial commitment of $1 billion, the AfDB said in a closing statement.



The additional finance builds on commitments of up to $48 billion from the World Bank and the AfDB, officials at the summit said. The two organisations&#8217; contributions could be increased during implementation, they said.



Provision of 300 million people with access to electricity, half of those currently without power on the continent, is a crucial building block for boosting Africa&#8217;s development by creating new jobs, said World Bank President Ajay Banga.



Half of the targeted new connections will get electricity from existing national grids, officials said at the summit, while the other half will be from renewable energy sources, including wind and solar mini-grids.



Apart from lighting up homes and businesses, Mission 300 is expected to boost the provision of clean cooking energy to homes, cutting reliance on wood and charcoal which are harmful, said Tanzania&#8217;s president, Samia Suluhu Hassan.



($1 = 0.9589 euros)



(Reporting by Duncan Miriri, Editing by Timothy Heritage)

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Plan to get electricity to more Africans wins $8 billion in new pledges

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Why Zyn Pouches Have Taken Off In The U.S.

DeepSeek: Has a Chinese company opened a new chapter for AI?

Race to lead Africa’s top development finance institution hots up

South African power cuts return after 10 months of uninterrupted supply

Trump repeats tariffs threat to dissuade BRICS nations from replacing US dollar

DeepSeek: Has a Chinese company opened a new chapter for AI?

What Really Happened With Water In LA And How Other Cities Can Better Prepare

South African central bank governor’s comments on rate decision

Nigeria union rejects telecom tariff hike, plans nationwide protest

UK warns Rwanda of threat to aid over its involvement in DRC conflict

African Markets – Factors to watch on Jan 30

South African rand stable ahead of rate decision

South African Markets – Factors to watch on Jan 30

Zuckerberg says Meta won’t slow down AI spend despite DeepSeek’s breakthrough

How Bluesky, Twitter’s onetime side project, is challenging Elon Musk’s X

Namibia’s unemployment rate rises to 36.9%

Plan to get electricity to more Africans wins $8 billion in new pledges

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