<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 27 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand slipped on Monday, ahead of a week packed with domestic and international data releases, with eyes set on interest rate decisions from the Federal Reserve and the South African Reserve Bank (SARB).



At 0657 GMT, the rand traded at 18.50 against the dollar, about 0.5% weaker than its previous close.



The dollar last traded about 0.1% stronger against a basket of currencies as traders pondered the ramifications of U.S. President Donald Trump&#8217;s tariff plans.



Global investor focus will be on the Fed this week, which will conclude its two-day meeting on Wednesday. It is widely expected to hold interest rates steady.



Domestic investors will then shift their attention towards the SARB&#8217;s first interest rate decision for 2025 on Thursday. Economists polled by Reuters estimate a 25 basis point cut to 7.50%.



&#8220;Despite soft inflation, uncertainties around fiscal policy, Eskom tariff hikes, and Trump&#8217;s global economic stance could push the SARB to adopt a cautious approach,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



South Africa&#8217;s benchmark 2030 government bond was weaker in early deals, with the yield up 6.5 basis points to 9.045%.



(Reporting by Sfundo Parakozov; Editing by Bhargav Acharya and Rashmi Aich)

rand Dec

South African rand weakens ahead of data-filled week

<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/large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE-820x547.jpg" alt="" class="wp-image-579309" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">African government, business and civil society leaders met in Davos. Image: World Economic Forum/Chris Heeney</figcaption></figure>



From its burgeoning youth population to its expanding influence on the global stage, Africa’s potential, challenges and new global leadership were at the heart of discussions at this week’s Annual Meeting in Davos.



Leaders from government, business and civil society gathered to explore the continent’s demographic dividend, address persistent divides in digital access and healthcare, and recognize Africa’s growing role in shaping international affairs. Here were the topics that came up.



<h2 class="wp-block-heading" id="h-africa-s-economy-young-and-fast">Africa’s economy: young and fast</h2>



If there was one word that might summarize discussions at Davos as it relates to Africa, it might be: optimism. “I have to say, I’m excited about where we’re going as a continent,” said Godfrey Mutizwa of CNBC Africa, in a panel he moderated about Africa’s momentum.



One big source of excitement across sessions was what might be called Africa’s vitality. Often referred to as “the young continent,” Erika Kraemer Mbula, Professor of Economics at the University of Johannesburg, was quick to correct that. “When I talk to my historian and paleontologist colleagues, they always remind me that this is the oldest continent when it comes to the origin of civilization; it is the cradle of humankind. It’s a youthful continent rather than the youngest.” The figures she shared speak for themselves. “60% of our population is below the age of 25. By 2050, about one out of three working age people globally will be African. So it’s about how we use this as an opportunity for transformative change.”



This youthfulness translates into a continent characterized by a “cutting-edge spirit of innovation,” said Wamkele Keabetswe Mene, Secretary-General of the African Continental Free Trade Area Secretariat.



<h2 class="wp-block-heading">Bridging divides</h2>



Capitalizing on all the continent has to offer, though, will require bridging deep gaps.



For example, when it comes to health, South Africa’s Minister of Health Pakishe Aaron Motsoaledi spoke of the “existing gross inequalities in the health status of people between developed and developing countries” but also “within the borders of countries themselves. It is politically, economically and socially unacceptable.”



Closing some of these deep gaps will be a priority of his, he said, referencing South Africa’s two-tier system, where the wealthiest in society have access to world-class services and everyone else has to make do. “In South Africa, and I’m not exaggerating, our inequality is worse than in any other country when it comes to healthcare.” According to figures shared by the minister, 51% of the country’s healthcare spending goes to the richest 14% of the population.



Digital divides were another topic that came up across the sessions. According to the&nbsp;<a href="https://www.un.org/africarenewal/magazine/december-2024/connectivity-everyone-key-africas-growth-and-prosperity">International Telecommunication Union’s latest data</a>, only 38% of people in Africa are using the internet, compared to the global average of 68%. In the&nbsp;<a href="https://www.weforum.org/stories/2024/09/the-intelligent-age-a-time-of-cooperation/">Intelligent Age</a>, where rapid advancements in artificial intelligence, quantum computing and blockchain offer many new opportunities, bridging this digital divide could be a game-changer. For example, as Paula Ingabire, Rwanda’s Minister of Information Communication Technology and Innovation, said, a report her department recently commissioned showed the financial boost potentially offered by AI. “What we are seeing is even with basic use cases that we can deploy, a potential to create at least 6% GDP contribution,” she said.



<h2 class="wp-block-heading">Financing change</h2>



Africa is full of people brimming with ideas on how to tackle the above challenges and more. But without access to resources, these ideas will remain just that.



“We don’t have a problem of entrepreneurship in Africa,” said Strive Masiyiwa, Founder and Executive Chairman, Cassava Technologies. “We have a lot of entrepreneurs, more than in any developed country, because our kids leave school knowing that if you don’t start something, you&#8217;re not going to be employed. But we have not put in place an ecosystem to support startups. There is no concept of it.”



The challenge for Africa’s women entrepreneurs runs even deeper, said Fatoumata Ba, Founder and Executive Chair of Janngo Capital — and also the founder of Africa’s first unicorn, the term used to describe startups that reach a valuation of $1 billion. “African women have the highest rate of female entrepreneurship globally at 26%. Yet according to the African Development Bank, they are facing a $42 billion funding gap,” she said. “Access to capital is a very important topic to tackle.”



<h2 class="wp-block-heading">A new era of African leadership</h2>



In December, South Africa assumed the G20 Presidency, the first time in the intergovernmental forum’s history that it will be hosted on the African continent. In&nbsp;<a href="https://www.weforum.org/stories/2025/01/davos-2025-special-address-cyril-ramaphosa-president-south-africa/">a special address at Davos</a>, South Africa’s President Cyril Ramaphosa shared his vision for his country’s and the continent’s leadership over the coming year, highlighting the unique role they might play in reigniting global cooperation after years of deepening divides.



“As we confront the challenges of the 21st century — from climate change to pandemics, to addressing the challenges of poverty to terrorism, from migration to artificial intelligence – we are again called upon to harness that most powerful, and most enduring, of human attributes: mutually beneficial cooperation and collaboration,” he told participants at the meeting.



Already, on many of these challenges, Africa has been stepping up to the plate. For example, in a week that saw some countries backtrack on their climate commitments, African countries have been doubling down on theirs.



Take the&nbsp;<a href="https://www.weforum.org/stories/2025/01/congo-kivu-kinshasa-green-corridor/">announcement of the Kivu-Kinshasa Green Corridor</a>. This historic initiative will see an area covering 540,000 km² — the size of France — become protected through partnerships with communities that integrate conservation and restoration with green economic development.



The initiative was spearheaded by the Democratic Republic of Congo, whose President Félix-Antoine Tshisekedi Tshilombo was in Davos to present his hopes for what could be achieved — from both an environmental and a societal perspective. “This project aims to protect some of the most intact tropical forests on the planet, while preserving extraordinary biodiversity, including some iconic species…that are unique to the Congo Basin,” he said. “But this initiative goes far beyond simple environmental preservation…It will create over 500,000 jobs, including at least 20,000 specifically for young men and women who’ve been demobilized from armed groups.”



Other initiatives announced in Davos hold great hope for the future. For example, Angola, Gabon, Senegal and Kenya joined the&nbsp;<a href="https://www.globalplasticaction.org/home">Global Plastic Action Partnership</a>, a global effort now made up of 25 countries to address plastic pollution through systemic waste solutions and a circular economy.



In Pretoria, South Africa,&nbsp;<a href="https://www.smart-energy.com/industry-sectors/digitalisation/world-economic-forum-launches-new-centres-for-the-energy-transition/#:~:text=The%20South%20Africa%20Centre%20for,the%20twin%20challenges%20of%20inclusive">a new centre for the energy transition</a>&nbsp;was announced, part of the World Economic Forum’s Centre for the Fourth Industrial Revolution initiative.



And the Forum, in partnership with the Global Center on Adaptation, is creating a new platform to boost private investment in climate adaptation in Africa. While a formal launch won’t take place until spring, the CRDB Bank Group has already committed $1 billion.



Aside from climate change, Africa has been showing leadership in other areas, too. For example, at a time when some of the most basic democratic norms are being increasingly challenged, countries on the continent have been leading by example, as Duma Gideon Boko, the recently elected President of Botswana told participants.



“When power changes, it occasions a great deal of consternation, a great deal of anxiety. We are never sure whether it will happen at all…and whether those who are in power are fully committed to the fundamental tenets of democracy,” he explained. “In Botswana, a party that had been in power for 58 years faced the unexpected spectacle of a decisive loss at the polls, and many questioned whether the outcome would be accepted, whether power would really change hands. Well, in Botswana it did — it was peaceful; it was seamless.”



What’s clear, then, is that increasingly, the future of Africa is no longer being shaped by forces outside the continent: it is coming from inside. “We are the ones charged with the responsibility to develop, and we are responsible to our people,” explained Strive Masiyiwa, Founder and Executive Chairman at Cassava Technologies. “Africans must develop Africa; it’s our continent.”

large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE

Davos 2025: Here’s what was top of the agenda for leaders from Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok-820x547.jpeg" alt="" class="wp-image-579253" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A 3D-printed miniature model of U.S. President-elect Donald Trump and TikTok logo are seen in this illustration taken January 19, 2025. Dado Ruvic | Reuters</figcaption></figure>



President Donald Trump wants a U.S. investor to take a major stake in ByteDance’s TikTok. Several parties are in contention even as potential buyers face a litany of legal hurdles and barriers.



After stepping in to restore TikTok in the U.S. and delaying a law that would effectively ban the app, Trump is looking for avenues to keep the popular platform afloat.



He has put forward a proposal for an American stakeholder to buy the company and then sell a 50% stake to the U.S. government, which will jointly run the app along with the private party.&nbsp;



Trump reportedly said Saturday that he was in talks with multiple people over buying TikTok and that he would likely decide on its future in the next 30 days.



So, who are the likely contenders for one of the most popular apps in the U.S.?



<h2 class="wp-block-heading" id="h-elon-musk-nbsp"><a></a>Elon Musk&nbsp;</h2>



Trump has already flagged several major investors within his inner circle as acceptable buyers, one of which is Tesla and SpaceX owner Elon Musk.&nbsp;



The world’s richest person is leading Trump’s new Department of Government Efficiency, has close business ties to China and has voiced opposition to the TikTok ban. 



Bloomberg reported earlier this month that the Chinese government was considering a plan to have Musk acquire TikTok’s U.S. operations, citing anonymous sources. That followed a report from the Wall Street Journal, which claimed TikTok’s CEO had been soliciting advice from Musk ahead of Trump’s inauguration. 



CNBC was unable to reach Musk for comment.&nbsp;



“Elon Musk continues to be front and center as a potential bidder for TikTok which likely includes some tech partners/outside investors to get a deal done,” financial services company Wedbush Securities said in a research note on Wednesday.&nbsp;



“Musk would be hand picked by Beijing and his ironclad relationship with Trump would make this a very logical choice in our view,” the note added.&nbsp;



Nat Schindler, an analyst at Scotiabank, also noted that Musk’s acquisition of Twitter has demonstrated his interest in global social media platforms.



However, Paul Triolo of Albright Stone Group also sees some potential obstacles for the tech tycoon.&nbsp;



“Musk is under fire already for owning X and the perception that he is using it to promote certain political ideas, and any involvement in TikTok could draw additional fire and potentially antitrust scrutiny,” he said.&nbsp;



<h2 class="wp-block-heading" id="h-larry-ellison"><a></a>Larry Ellison</h2>



Trump has also said he’d “like” to see Oracle Chairman Larry Ellison purchase the platform.



Ellison, a longtime Trump supporter, stood beside the President at a press conference on his AI infrastructure investment plans on Tuesday, where Trump was asked questions about a potential TikTok deal. 



“What I’m thinking about saying to somebody is, buy it, and give half to the United States of America. Half and we’ll give you the permit,” Trump said before turning to Ellison to ask if the deal sounded reasonable.



“Sounds like a good deal to me Mr. President,” Ellison replied.&nbsp;



Ellison and his company are currently at the center of the TikTok dilemma, operating as a cloud infrastructure provider for ByteDance in the U.S.



Given its existing relationship with Tiktok, Oracle and is “directly invested in Tiktok’s success in the region,” Scotiabank’s Schindler said.&nbsp;



Ellison had bid for Tiktok, along with Walmart, back in 2020 when Trump first pushed for a ban on the platform. Neither company responded to CNBC’s request for comment. 



Trump had approved of the Walmart-Oracle deal in principle, which would’ve seen the tech and retail giants partner to take over the video-sharing app in the U.S., avoiding a shutdown. However, the Trump administration’s attempt to ban TikTok in the U.S. fell through in the face of legal challenges.



Ellison later joined a group of investors that helped Elon Musk buy social media platform Twitter, now known as X, in 2022. 



″[We believe] Oracle/Ellison could play a pivotal role in any deal given their key technology partnership with TikTok and his appearance at the White House with Project Stargate,” Wedbush said.



Wedbush added that it expects a slew of TikTok bids to come over the coming weeks from a host of players with Musk and Ellison leading the pack.



According to a National Public Radio report on Saturday, the Trump administration is working on a plan to save TikTok that would involve Oracle and a group of outside investors effectively taking control of it global operations.



<h2 class="wp-block-heading" id="h-perplexity-ai"><a></a>Perplexity AI</h2>



California-based artificial intelligence search engine startup Perplexity AI submitted a bid for TikTok to ByteDance on Jan. 18, as it seeks to create a new merged entity combining Perplexity, TikTok U.S. and new capital partners, CNBC learned.



Following Trump’s comments on a TikTok deal structure, the AI company revised its merger proposal on Sunday to also allow for the U.S. government to own up to 50% of the new company upon future IPO, according to a proposal document seen by CNBC. 



The document proposes ByteDance offer TikTok U.S., without its recommendation algorithm, in exchange for the company’s existing investors receiving equity in the merged company.&nbsp;



The deal would reportedly bring more video to Perplexity — recently valued at about $9 billion — as it gains increasing investor interest amid the generative AI boom and competes with OpenAI and Google. 



<h2 class="wp-block-heading" id="h-big-players-serious-money-nbsp"><a></a>Big players, serious money&nbsp;</h2>



Experts flagged several other parties likely to be interested in a potential deal for TikTok, adding that the barriers to entry were high.&nbsp;



Given the financial stakes of a TikTok deal, it’s unlikely that some rogue investor is going to swoop in and buy the platform on the cheap, according to Albright Stone Group’s Triolo.&nbsp;



“While an up-to-date valuation on TikTok is difficult to come up with, it is likely to the order of $40-80 billion, meaning whoever decides to jump in has to be ready with some serious money,” he said.&nbsp;



He added that potential suitors are likely to include some of America’s largest social media and technology players, such as Meta and Google, in addition to Musk’s X. 



Meta and Google didn’t immediately respond to a CNBC inquiry.



Sarah Kreps, the director of the Tech Policy Institute at Cornell University, however, warned that players such as Meta, Google and Musk getting a substantial stake in TikTok could raise antitrust questions.



Scotiabank analyst Nat Schindler noted that there were also a number of other players, including existing investors BlackRock, Coatue, and General Atlantic, who own a large chunk of TikTok’s parent company. According to him, some of these investors are likely to participate in any sale of the U.S. platform by investing in the new entity.



“Other large VCs, hedge funds, and asset managers from Tiger to Fidelity would also likely show interest in a fast growing global platform with such a huge viewer base,” said Schindler, adding that finding investors to own a part of Tiktok won’t be a problem.



<h2 class="wp-block-heading" id="h-mrbeast-nbsp"><a></a>MrBeast&nbsp;</h2>



The fervor surrounding a purchase of TikTok U.S. has also seen some unconventional players enter the fray.&nbsp;



Social media superstar MrBeast — real name Jimmy Donaldson — who has more than 100 million TikTok followers has posted several videos in which he indicated serious interest in buying the platform, claiming he has had talks with billionaires.&nbsp;



In one video, the internet personality claimed he had an official offer ready, jesting that he might be the new TikTok CEO. 



Media reports have also mentioned Donaldson and a group of investors preparing to make a bid for TikTok. 



On Thursday, Matthew Hiltzik, a spokesperson for Donaldson, told CNBC that “Several potential buyers are in ongoing discussions with Jimmy, but he has no exclusive agreements with any of them.”



<h2 class="wp-block-heading" id="h-the-people-s-bid-for-tiktok"><a></a>‘The People’s Bid for TikTok’</h2>



Led by Project Liberty Founder Frank McCourt and involving Canadian businessman and TV personality Kevin O’Leary, “The People’s Bid for TikTok,” has made a $20 billion cash offer to buy TikTok.&nbsp;



O’Leary told CNBC last year that he wanted to buy the platform at a discount as any possible deal won’t include TikTok’s original algorithm. The organization said it already has a replacement for the algorithm to use for TikTok U.S. 



Following Trump’s comments on a 50% stake in the platform, both McCourt and O’Leary told CNBC this week that they were interested in a TikTok deal and were hoping to work with Trump to make it happen. 



McCourt has also told CNBC that he wants TikTok to run a decentralized social networking protocol, or DSNP, overseen by the Project Liberty Institute, a nonprofit founded by the billionaire.



Bidding interest aside, a number of legal and tech experts have told CNBC that Trump’s executive order to delay the TikTok ban contradicts the Supreme Court’s earlier ruling to uphold the PAFACA and could face legal opposition.



O’Leary also told CNBC on Monday that a TikTok deal could not happen under the current law, after the Supreme Court upheld an impending ban on TikTok under the Protecting Americans from Foreign Adversary Controlled Applications Act, or PAFACA, on Sunday. 



Beijing and its pending negotiations with Trump regarding trade with the U.S. is also expected to play a determining factor in whether the Chinese government would allow ByteDance to make a divestiture.



“In this game of high stakes poker between the Trump Administration and Beijing it’s clear TikTok is a big chip on the table,” Wedush said.



— CNBC’s Hayden Field contributed to this report



Correction: This copy has been updated to fix a quote attribution.

108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok

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<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="640" height="800" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/Dr.-Obiageli-Ezekwesili-640x800.jpg" alt="" class="wp-image-578278" style="width:640px;height:auto" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/Dr.-Obiageli-Ezekwesili-640x800.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/Dr.-Obiageli-Ezekwesili-240x300.jpg 240w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/Dr.-Obiageli-Ezekwesili-72x90.jpg 72w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/Dr.-Obiageli-Ezekwesili-768x960.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/Dr.-Obiageli-Ezekwesili.jpg 819w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption class="wp-element-caption">Dr. Obiageli “Oby” Ezekwesili, Founder and CEO of Human Capital Africa</figcaption></figure>



As we commemorate the 2025 International Day of Education, Artificial Intelligence (AI) leads global headlines, social media chatter, boardroom discussions, and policy debates. This year&#8217;s theme, &#8220;AI and Education: Preserving Human Agency in a World of Automation,&#8221; reflects this focus. Artificial Intelligence promises to reshape every aspect of our lives, including the global labor markets. While this technological revolution promises increased productivity and innovation, it raises eyebrows about job displacement and the future of human work. Amidst these changes, one truth remains constant: the foundation for developing the most automation-resistant skills is built through strong foundational learning in the early years of life: basic literacy, numeracy, and transferable skills, such as socio-emotional skills, cognitive reasoning, analytical thinking, and more.



The recently released World Economic Forum&#8217;s 2025 Future of Jobs Report paints a clear picture: as automation accelerates, unique human capabilities—analytical thinking, creative problem-solving, resilience and flexibility, and leadership—become increasingly valuable. These skills are the backbone of human agency in an increasingly automated world. As Africa continues to drive global workforce growth in the coming years, there is an urgent need to match this demand with quality supply. This process begins at the foundational level.



These higher-order cognitive and socio-emotional skills are not inherently innate; the evidence indicates that they are cultivated through early and consistent exposure to quality foundational learning. A Stanford University study observed that just after one year of early math lessons—similar to lessons delivered under Zambiaʼs Catch Up program—children&#8217;s brains showed significant changes in regions responsible for working memory and numerical processing. This neuroplasticity in early childhood forms the basis for more complex problem-solving and analytical thinking later in life. Moreover, structured investment in socio-emotional learning skills through SEL programs has been found to improve not only academic performance but also deepen long-term resilience and a host of other pro-social behaviours.



It is clear that the AI revolution strengthens the argument for investing in foundational education. Human agency in the age of AI is not fostered through coding bootcamps; it is primarily developed in pre-primary and primary school classrooms. This is where children first learn to decode text, understand numbers, and think critically. When a child learns to read with comprehension, they are not just acquiring a skill—they are building the cognitive foundation necessary to question, analyze, and influence the world around them. Similarly, when they master basic mathematics, they are establishing the mental frameworks required to understand and control technological tools—including AI—rather than merely being controlled by them.



The stakes could not be higher for Africa. With the continent poised to make the largest contribution to the global labor market due to its young and growing population (sub-Saharan Africa is expected to account for over 70% of the growth in the worldʼs working-age population by 2050), ensuring strong foundational skills becomes an economic necessity. We have observed leadership across the continent, with countries such as Rwanda and Mauritius publishing comprehensive national AI strategies and Nigeria, Kenya, and South Africa showing an ever-increasing number of AI innovations with strong applications in the education sector. The African Union&#8217;s Artificial Intelligence Strategy also envisions us as leaders in technological innovation. But of course, leadership itself requires human agency: the ability to understand, question, and direct technological change rather than merely adapt to it. Understanding and mitigating AI risks, tackling the digital divide, leading the design, training, and operation of ethical AI systems which are African-centred—all ambitions laid out within our continental strategy for AI—require the highest levels of human agency, which is predicated on structured investments in foundational learning.



Consider this stark reality: In an age where AI can generate text, create images, and solve complex problems, what happens to those—9 in 10 African children—who cannot read, write, or perform basic calculations by age 10? They become dependent on AI systems that they cannot critically evaluate or meaningfully engage with. This is not just a digital divide; it&#8217;s an agency divide that threatens to reinforce neo-colonial patterns of technological dependence.



The path forward is clear. African leaders must prioritize education at large—particularly foundational learning—as the bedrock of technological agency. By focusing on foundational learning, we are not choosing between basic and advanced skills; rather, we are building the essential base upon which all future learning, including in emerging technologies, can be constructed. The evidence is clear: interventions such as Teaching-at-the-Right Level (TaRL) and structured pedagogy programs can boost learning outcomes in early grades, deliver cost-savings, and in turn build uniquely human skills—such as analytical thinking, creative problem-solving, resilience and flexibility, and leadership—which will hold value in future labor markets and laying the cognitive foundation for technological empowerment.



While foundational learning is crucial, a holistic approach to education in the AI era will require broader interventions. By combining these interventions with a strong focus on foundational learning, African education systems can nurture students prepared to participate meaningfully in future labor markets and foster skills for Africaʼs technological leadership.



I join the Foundational Learning Hub and partners to call upon African governments, donors, the private sector, and the broader education community to leverage the advancements in AI and edtech and apply them to strengthen our educational systems further. To ensure the best results:



<ol class="wp-block-list">
<li>Edtech innovations must be carefully developed and implemented with instructional rigor, evidence, equity, privacy, and safeguarding at their core.</li>



<li>EdTech solutions that are developed must improve on the quality of teaching and be integrated into existing government-led, foundational learning programs to ensure they can equitably impact and improve learning outcomes at scale.</li>



<li>African governments must prioritise the implementation of cost-eﬃcient and proven pedagogical approaches like Structured Pedagogy and TARL; and provide an enabling environment for innovation and technology to support delivering them at scale.</li>



<li>African governments must recognise connectivity, cost, and infrastructure constraints in Africa and work towards developing digital public infrastructure and products that can be scaled within that context.</li>



<li>African governments must integrate digital literacy to curricula, and donors must ensure it is represented in programme design. Teachers must be empowered to teach with AI, as well as teach about AI, driving utility and ensuring that the broader application of AI to development priorities can be accelerated.</li>



<li>Donors and funders must enhance their focus and funding on foundational learning skills in Africa, increasing support for contextually relevant technology innovation that can be delivered at scale and have an impact on learning. While also investing in further developing the evidence base to inform AI product development.</li>
</ol>



As AI systems become more powerful, the question of human agency becomes more urgent. Will our children be able to understand, question, and direct these systems, or will they be directed by them? Again, the answer depends on what happens today in our primary school classrooms.

Dr. Obiageli Ezekwesili

Foundational Learning: Empowering Africaʼs Agency and Development in the Age of AI

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090637-1737563597358-1U8A1421-820x461.jpg" alt="" class="wp-image-578258" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090637-1737563597358-1U8A1421-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090637-1737563597358-1U8A1421-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090637-1737563597358-1U8A1421-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090637-1737563597358-1U8A1421-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090637-1737563597358-1U8A1421-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090637-1737563597358-1U8A1421.jpg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Rachel Reeves, UK Finance Minister, speaking on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 22, 2025. Gerry Miller | CNBC</figcaption></figure>



The U.K. will soften some planned changes to its controversial non-dom tax rule following concerns of a millionaire exodus, the Treasury has confirmed.



Britain’s 200-year-old non-dom regime permits people living in the U.K., but who are domiciled elsewhere for tax purposes, to avoid paying levies on income and capital gains earnings overseas for up to 15 years. The regime has long courted controversy, leading U.K. Finance Minister Rachel Reeves in her October budget to confirm that it would be abolished from April 2025, and that all long-term residents would be subject to inheritance tax on their worldwide assets, including those held in trust.



Speaking at a fringe event at the World Economic Forum in Davos, Reeves said the government would soon put forward an amendment to the country’s Finance Bill, increasing the generosity of a rule which allows non-doms to bring money to the UK without paying significant taxes.&nbsp;



“We have been listening to the concerns that have been raised by the non-dom community,” Reeves told The Wall Street Journal’s Emma Tucker when asked about recent departures of the ultra-wealthy.



“In the finance bill, we will be tabling an amendment which makes more generous the temporary repatriation facility, which enables non-doms to bring money into the UK without paying significant taxes,” she added.



Reeves on Thursday also sought to reassure wealthy overseas investors that the changes would not affect double-taxation agreements held between the U.K. and other countries.



“There’s been some concerns from countries that have double taxation conventions with the U.K., including India, that they would be drawn in to be paying inheritance tax. That’s not the case. We’re not going to be changing those double taxation conventions,” she said.



In a statement to CNBC confirming the plans, a Treasury spokesperson said the tweaks were designed to motivate non-doms “to bring their funds to the U.K., encouraging them to spend and invest this money here.”



“While we do not expect these changes to impact the £33.8 billion of tax revenue that the OBR forecast to raise over five years, they reflect our continued engagement with stakeholders to make sure the reforms announced at Budget operate as intended,” the statement added.



The government’s October clampdown on non-doms formed part of wider measures aimed at the upper echelons, with new levies placed on private equity bosses, private schools, second homes and private jets.



Critics warned at the time that the moves would spark a mass exit of ultra wealthy individuals — many of whom, they said, would be key contributors to the government’s pro-investment agenda.



An estimated 10,800 millionaires left the U.K. last year, according to updated figures from global analytics firm New World Wealth and investment migration advisers Henley &amp; Partners, a 157% increase on 2023.



<a href="https://www.cnbc.com/live-tv/"></a>

108090637-1737563597358-1U8A1421

UK to soften tax rules for wealthy foreigners after millionaire exodus, Rachel Reeves says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="3635" height="2633" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/VBIWQECG2BIYTB5AT2YWGLXVKE.avif" alt="" class="wp-image-578255"/><figcaption class="wp-element-caption">One of the rail-mounted stacker reclaimers that scoop up and transfer coal into and out of the yard is seen at Africa&#8217;s largest coal export facility, the Richards Bay Coal Terminal, Richards Bay harbour, South Africa, June 21, 2018. REUTERS/Tanisha Heiberg/File Photo</figcaption></figure>



Jan 24 (Reuters)&nbsp;&#8211;&nbsp;Coal exports from South Africa&#8217;s Richards Bay Coal Terminal (RBCT) rose 10% to 52.08 million metric tons in 2024, the highest in three years, amid signs of improving freight rail performance.



South Africa&#8217;s coal shipments have declined from 76 million tons in 2017, mainly due to state-owned freight rail and port operator Transnet&#8217;s lack of capacity to haul commodities to export markets.



Coal exports through RBCT, South Africa&#8217;s main coal export terminal, fell to 47.21 million tons in 2023, the lowest since 1992.



Transnet&#8217;s struggles are blamed on a lack of locomotives and spares, as well as cable theft and vandalism of its infrastructure. This has forced some minerals exporters to resort to trucking to port, with some commodity cargo now going through Mozambique.



However, some major coal exporters, including Thungela Resources and Exxaro Resources, said they noted improved freight rail performance during the second half of 2024.



RBCT said in a performance update on Friday that 6,342 trains were offloaded at the terminal in 2024, up from 5,820 the year before. The average number of trains also edged up to 17 per day in 2024, from 16 the previous year.



In 2024, Asia&#8217;s share of South Africa&#8217;s coal exports increased to 43.99 million tons, or 84.5% of the total, up from 37.1 million the previous year. India accounted for 25.75 million tons of the exports, while Pakistan imported 2.37 million tons.



Shipments to Europe, which surged to 14.3 million tons in 2022 after the European Union banned coal from Russia following the invasion of Ukraine, further declined to 3.54 million tons last year, after falling to 6.8 million tons in 2023.



(Reporting by Nelson Banya; Editing by Mark Potter)

VBIWQECG2BIYTB5AT2YWGLXVKE

S.Africa’s Richards Bay exports up 10% in 2024 amid rail improvement

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A collection of mixed denomination South African rand coins sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. South Africas inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Jan 24 (Reuters) &#8211; South Africa&#8217;s rand firmed on Friday against a weaker dollar after U.S. President Donald Trump demanded lower interest rates from the Federal Reserve, driving down Treasury yields.



At 0848 GMT, the rand traded at 18.35 against the U.S. dollar, about 1% stronger than its previous close. The greenback last traded about 0.6% weaker against a basket of currencies.



Data out of the world&#8217;s biggest economy on Thursday showed a rise in weekly jobless claims, while Trump, speaking virtually at the World Economic Forum meeting at Davos, said he would demand lower interest rates.



The&nbsp;jobless claims and Trump&#8217;s remarks&nbsp;led to a revision of U.S. rate cut expectations and drove&nbsp;U.S. Treasury yields lower on Friday, ETM Analytics said in a research note.



&#8220;In turn, the dollar has come under renewed pressure, with the rand taking advantage as it trades to its strongest levels since before Christmas. Whether the rand bulls can sustain this momentum into the weekend remains to be seen.&#8221;



But analysts said that although dollar weakness supports the local currency, tariff risks posed by Trump and a fragile global sentiment could limit further gains.



Next week, domestically focused investors will look to the South African Reserve Bank (SARB) when it announces its first interest rate decision for 2025 on Jan. 30.



&#8220;With the SARB, Fed and (European Central Bank) meetings ahead, central bank guidance will heavily influence (foreign exchange) and bond markets,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



South Africa&#8217;s benchmark 2030 government bond was stronger, with the yield down 8 basis points to 8.975%.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index last traded up more than 1%.



(Reporting by Tannur Anders; additional reporting by Sfundo Parakozov; editing by Rashmi Aich and Mark Heinrich)

South African Economy As Inflation Rate Rises For First Time In 2017

South African rand rallies against weaker dollar, US Fed rates in focus

<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/GettyImages-1931982369-820x547.jpg" alt="" class="wp-image-578192" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1931982369-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1931982369-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1931982369-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1931982369-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1931982369-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1931982369-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Wale Edun, Nigeria&#8217;s finance minister, during a Bloomberg Television interview on day two of the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday, Jan. 17, 2024. The annual Davos gathering of political leaders, top executives and celebrities runs from January 15 to 19. Photographer: Stefan Wermuth/Bloomberg via Getty Images</figcaption></figure>



DAVOS, Switzerland, (Reuters) &#8211; Nigeria needs to double economic growth within the next year or two from an annualized rate of 3.5% in the third quarter to lift its population out of poverty, its finance minister told Reuters on Thursday at the World Economic Forum&#8217;s annual meeting.



Finance Minister and Coordinating Minister for the Economy Wale Edun said Nigeria was on the path to growth after a year of tough economic reforms that sent inflation soaring, but should open the door for more investment.



Edun said he had been meeting in Davos this week with business leaders in the areas of consumer goods, food and beverages, financial services and infrastructure to promote investments, he said in a Thursday interview.



&#8220;It&#8217;s a steady trickle now. What we want is a stream and at the end of the day a flood of investment,&#8221; he said.



Nigeria has been trying to encourage private investment rather than rely on borrowing to create jobs, as the government searches for a solution to sluggish growth, double-digit inflation and a heavy debt burden.



President Bola Tinubu has vowed to expand the economy by at least 6% a year, create jobs and unify the exchange rate, while also tackling rampant insecurity.



Tinubu scrapped a popular but costly petrol subsidy and lifted foreign exchange trading restrictions. That contributed to consumer inflation, but Edun expressed confidence that Nigerians would soon be past their cost of living crisis.



Central Bank Governor Olayemi Cardoso on Thursday said he expected the economy to expand by 4.17% this year, driven by ongoing reforms and stabilising inflation.



(Writing by Chijioke Ohuocha; Editing by Mark Potter)

Day Two Of The World Economic Forum (WEF) 2024

Nigeria needs to double economic growth within a year or two, finance minister says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/JMH4QG7UXFNEBLQ2OHFWN3ZYEQ-820x573.jpg" alt="" class="wp-image-578172" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/JMH4QG7UXFNEBLQ2OHFWN3ZYEQ-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/JMH4QG7UXFNEBLQ2OHFWN3ZYEQ-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/JMH4QG7UXFNEBLQ2OHFWN3ZYEQ-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/JMH4QG7UXFNEBLQ2OHFWN3ZYEQ-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/JMH4QG7UXFNEBLQ2OHFWN3ZYEQ-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/JMH4QG7UXFNEBLQ2OHFWN3ZYEQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Solar panels are seen near the cooling towers of a retired coal-fired Komati Power Station, operated by Eskom, near Komati village, in the Mpumalanga province in South Africa, May 9, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Jan 24 (Thomson Reuters Foundation)&nbsp;&#8211;&nbsp;Inconsistent government and corporate climate strategies may see poorer regions left behind in the transition away from polluting industries to green jobs, according to new research.



Wealthier cities like Durban, Cape Town and Johannesburg, have more advanced plans to cut emissions and adapt to climate impacts than less affluent regions, said the analysis of more than 50 government and corporate entities by South African non-profit SouthSouthNorth (SSN).



&#8220;If poorer provinces are left behind, the socio-economic divide will widen, disproportionately affecting vulnerable groups such as miners, informal workers and women,&#8221; said Samson Mbewe, an SSN project lead.



The northeastern province of Mpumalanga, for example, is the heartland of South Africa&#8217;s coal production. The closure of coal plants there could lead to sharp rises in unemployment if new green jobs do not fill the void, Mbewe said.



The country&#8217;s new Climate Change Act requires all levels of government to align their policies and actions with its goals of a low-carbon economy through, for example, setting and mandating greenhouse gas emission targets for companies.



But the analysis of these entities showed significantly different levels of preparation, a discrepancy that could lead to the regions with already high levels of unemployment being left behind when it comes to new jobs in the clean energy economy, the report warns.



South Africa is Africa&#8217;s most industrialised nation, with more than 80% of its power drawn from its coal reserves, according to the Department of Mineral Resources and Energy. It is also one of the top 15 greenhouse gas emitters worldwide, ahead of France and Britain.



In 2021, South Africa became the first country to accept the Just Energy Transition Partnership (JETP) deal in which richer nations pledged $8.5 billion to accelerate the country&#8217;s shift away from coal to renewables, while protecting local employment.



The term &#8220;just transition&#8221; refers to ensuring job creation in clean energy sectors as countries phase out polluting industries and move towards renewable energy, according to the presidential climate commission.



South Africa&#8217;s vast areas of sun-soaked land make it ideal for renewable energy projects that promise new jobs in a country suffering from 32% unemployment.



But communities are nervous that this type of work may be scarce and struggle to replace coal sector employment of some 90,000 people.



<h2 class="wp-block-heading" id="h-climate-change-act">CLIMATE CHANGE ACT</h2>



South Africa&#8217;s Climate Change Act was signed into law in July last year, but the SSN analysis found multinational firms and different layers of government had all made varied levels of progress.



&#8220;Our analysis of the climate plans of the key engines of South Africa&#8217;s economy reveals a patchwork of different approaches to achieving a fair, people-focused transition,&#8221; said Camilla Hyslop, data lead at Net Zero Tracker, a report partner.



Some companies&#8217; climate strategies make broad, sweeping pledges linked to achieving net zero emissions by 2050, but lack any wording around local employment and decent wages that need to be protected in the process, the analysis found.



&#8220;Some companies entirely overlook the need for a transition &#8211; just or otherwise,&#8221; Hyslop said.



The SSN analysis also found that the major cities were surpassing provincial climate policy strategies, which should learn from successful city actions.



For example, Durban&#8217;s plan goes into detail about reforestation projects that it says will help capture carbon.



But Kwazulu-Natal province, where Durban is found, speaks little about new, clean jobs that could replace those lost in polluting sectors such as petrochemical industries.



Less affluent, coal-dependent regions found in Mpumalanga have no formal net zero targets with no long-term structured plan on how the transition away from coal will take place.



<h2 class="wp-block-heading" id="h-patchwork-plans">PATCHWORK PLANS</h2>



The analysis recommendations include creating committees between different levels of government to better align climate plans, increased funding and technical support for poorer regions and incentivising companies to adopt robust transition plans.



Coordination between different government tiers would tackle a &#8220;missed opportunity&#8221; for provinces to draw inspiration from cities&#8217; climate plans said Ian Steuart, a senior economist at the Trade and Industrial Policy Strategies (TIPS).



But placing communities at the heart of these plans through bringing the policies to them in local forums is key, said Chantal Naidoo, executive director of Rabia Transitions, a South African transitions finance research and advisory non-profit.



&#8220;We work through civil society groups &#8230; saying to them, you need to help government understand what justice looks like at your level,&#8221; said Naidoo, who also worked on the JETP presidential investment plan.



(Reporting by Kim Harrisberg @KimHarrisberg; Editing by Jack Graham and Jon Hemming. The Thomson Reuters Foundation is the charitable arm of Thomson Reuters.)

FILE PHOTO: South Africa’s ANC walks political tight rope over coal plant shutdowns

South Africa’s patchwork climate plans risk widening inequality

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/54279620516_c7afabe6a8_o-820x547.jpg" alt="" class="wp-image-577956" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/54279620516_c7afabe6a8_o-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/54279620516_c7afabe6a8_o-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/54279620516_c7afabe6a8_o-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/54279620516_c7afabe6a8_o-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/54279620516_c7afabe6a8_o-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/54279620516_c7afabe6a8_o-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Duma Gideon Boko, President of Botswana; Godfrey Mutizwa, Chief Editor, CNBC Africa, South Africa; Leila Fourie, Group Chief Executive Officer, Johannesburg Stock Exchange, South Africa; Samaila Zubairu, President and Chief Executive Officer, Africa Finance Corporation &#8211; AFC, Lagos; Wamkele Keabetswe Mene, Secretary-General, African Continental Free Trade Area Secretariat, Accra; speaking in Africa’s Economy: Young and Fast session at the World Economic Forum Annual Meeting 2025 in Davos-Klosters, Switzerland, 21/1/2025, 17:30 – 18:15 at Congress Centre &#8211; Aspen 2. Stakeholder Dialogue. Copyright: World Economic Forum / Chris Heeney</figcaption></figure>



DAVOS, Switzerland, Jan 23 (Reuters)&nbsp;&#8211;&nbsp;Top diamond producer Botswana&#8217;s new President Duma Boko said on Thursday that he hoped to clinch a long-delayed sales pact with industry giant De Beers as early as Friday but underlined the need to diversify the Southern African nation&#8217;s economy.



Boko, a 55-year-old lawyer, took the reins of Botswana &#8211; one of Africa&#8217;s richest countries &#8211; in November following a landslide election upset that ended nearly six decades of rule by the Botswana Democratic Party (BDP).



He has made the task of finalising the deal with Anglo American&#8217;s De Beers unit an early priority.



Speaking at a Reuters NEXT Newsmaker at the World Economic Forum&#8217;s annual meeting in Davos, Switzerland, Boko said his government was in agreement with De Beers on most issues. All that remained was &#8220;tidying up&#8221;, he added.



Asked by Reuters Editor-in-Chief Alessandra Galloni when the deal would be signed, Boko said: &#8220;I&#8217;m hoping it is tomorrow. I mean it literally.&#8221;



Botswana and De Beers agreed a new pact in 2023, which would see the government&#8217;s share of diamonds from the Debswana joint venture gradually increase to 50% over the next decade. But it was never signed under Boko&#8217;s predecessor Mokgweetsi Masisi.



Debswana currently sells 75% of its output to De Beers.



In addition, Boko said talks aimed at increasing Botswana&#8217;s ownership stake in De Beers &#8211; currently at 15% &#8211; were &#8220;going well&#8221;.



Anglo American is looking to divest De Beers as part of a broader restructuring of its sprawling business.



<h2 class="wp-block-heading" id="h-challenges-and-opportunities">CHALLENGES AND OPPORTUNITIES</h2>



Like many African countries, Botswana&#8217;s economy is largely dependent on the export of a single commodity &#8211; in its case, diamonds, of which it is the world&#8217;s leading producer by value.



Unlike many of its continental neighbours, its leaders have invested their commodity windfall in health, education and social welfare.



The strategy has largely paid off. Botswana&#8217;s GDP per capita was $7,250 in 2023 &#8211; compared with an average for sub-Saharan Africa of $4,800, World Bank data shows.



Analysts, however, blamed mounting economic grievances, particularly among young people, for the downfall of the BDP, which had governed the nation of around 2.5 million people since independence from Britain in 1966.



&#8220;The so-called liberation parties did the best they could,&#8221; Boko said. &#8220;It seems to me that many of them have now outlived their welcome and their usefulness.&#8221;



On the campaign trail, Boko&#8217;s coalition pledged to more than double the minimum wage, improve social services and create a more independent judiciary, among other measures.



But the new president faces headwinds.



The economy likely contracted last year on a downturn in the global diamond market and unemployment has been on the rise.



The finance ministry is now forecasting a diamond rebound and GDP growth of 3% to 4% this year. However, Boko told the Reuters event that Botswana could not rely solely on diamonds.



&#8220;We are looking to power the economy of Botswana. We&#8217;re looking to diversify it,&#8221; he said, adding that his government would focus on the green economy, climate-smart agriculture, renewable energy and diversifying the mining sector.



While many world leaders are viewing the return to power of U.S. President Donald Trump with concern, Boko said the new Washington administration&#8217;s vow to bring its foreign policy in line with American self-interest was not necessarily a threat.



&#8220;(The) West has every reason to play its part in Africa, because if it doesn&#8217;t, there are others who will want to play some part. We have China in the wings, and it&#8217;s seeking&#8230; to exert influence on Africa,&#8221; he said.



(Additional reporting by Bhargav Acharya and Sfundo Parakozov in Johannesburg; Writing by Tannur Anders and Joe Bavier Editing by Alexander Winning, William Maclean)

World Economic Forum Annual Meeting 2025 in Davos-Klosters

Botswana president aims to clinch De Beers deal, diversify economy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091198-1737637105852-108090536-1737559226059-Untitled-2-820x461.jpg" alt="" class="wp-image-577907" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091198-1737637105852-108090536-1737559226059-Untitled-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091198-1737637105852-108090536-1737559226059-Untitled-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091198-1737637105852-108090536-1737559226059-Untitled-2-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091198-1737637105852-108090536-1737559226059-Untitled-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091198-1737637105852-108090536-1737559226059-Untitled-2-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091198-1737637105852-108090536-1737559226059-Untitled-2.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">L-R: Satya Nadella, CEO of Microsoft, Marc Benioff, Chairman and CEO of Salesforce, and Elon Musk, CEO of Tesla and SpaceX. Reuters</figcaption></figure>



Some of the biggest names in technology have clashed after President Donald Trump unveiled his $500 billion private AI investment project.



Earlier this week, Trump announced a joint venture with OpenAI, Oracle and Softbank to invest billions of dollars in ramping up domestic computing capacity to boost AI development in the United States.



The project, dubbed Stargate, was unveiled at the White House by Trump, Softbank CEO Masayoshi Son, OpenAI CEO Sam Altman and Oracle co-founder Larry Ellison. Son will be the chairman of Stargate, while semiconductor company Arm, Microsoft, Nvidia, Oracle, and OpenAI will serve as key initial technology partners.



The executives committed to invest an initial $100 billion and up to $500 billion over the next four years.



The first blow was thrown by Elon Musk — a close ally to Trump and himself a key figure in AI with his startup xAI — who claimed in a post on his X social media platform that the companies involved in the project “don’t actually have the money” to fund the investment.



“SoftBank has well under $10B secured. I have that on good authority,” Musk added in a subsequent post. Altman, replying to Musk’s allegation, said. “Wrong, as you surely know.”



“Want to come visit the first site already under way?” Altman added. “This is great for the country. i realize what is great for the country isn’t always what’s optimal for your companies, but in your new role i hope you’ll mostly put [the U.S.] first.”



Musk chairs the Department of Government Efficiency, or DOGE, a major White House government efficiency effort. He was Trump’s biggest financial backer by far in the 2024&nbsp;election.



<h2 class="wp-block-heading" id="h-possible-microsoft-openai-rift-emerging"><a></a>Possible Microsoft-OpenAI rift emerging</h2>



On Wednesday, Salesforce CEO Marc Benioff suggested the investment plan could create tensions between OpenAI and Microsoft, who are close partners.



OpenAI said Tuesday that it had ended an arrangement with Microsoft to serve as its exclusive cloud provider. The change in relationship was disclosed as part of the Stargate Project announcement.



“I think it’s extremely important that OpenAI gets to other platforms quickly because Microsoft is building their own AI,” Benioff told CNBC. “I don’t think that Microsoft will use OpenAI in the future, they’ll have their own frontier models.”



“They’ve said it very clearly that it’s too expensive and too hard for them, and that they want to have their own,” the Salesforce chief added. “That’s why they hired Mustafa Suleyman [as Microsoft AI CEO] — and Mustafa Suleyman and Sam Altman are not best friends.”



Microsoft last year appointed Suleyman, a co-founder of Google’s AI lab DeepMind, to lead its new AI division.



Microsoft is the single largest investor in OpenAI, having plowed billions of dollars of investment into the firm. It also offers OpenAI models on its Azure cloud platform as part of a commercial arrangement between the two firms.



<h2 class="wp-block-heading" id="h-i-m-good-for-my-80-billion"><a></a>‘I’m good for my $80 billion’</h2>



Microsoft CEO Satya Nadella addressed concerns surrounding the tech giant’s relationship with OpenAI Wednesday, saying that the two continue to share a “critical partnership.”



“Sam [Altman] wants to continue with scaling laws to build out more compute in order for him to train more models,” Nadella told CNBC. “We have right of first refusal. He comes to us first. If we meet those needs, then we clear it. If not, he can go to these other providers.”



When asked about Musk’s claim that OpenAI and other companies involved in Stargate don’t have the funds to make up the total $100 billion initial commitment, Nadella said: “Look, all I know is, I’m good for my $80 billion.”



Microsoft announced at the start of 2025 that it plans to spend $80 billion this year on the construction of data centers to boost its AI efforts.



“I am going to spend $80 billion building out Azure,” Nadella told CNBC. “Customers can count on Microsoft.”



&#8211; CNBC’s Eamon Javers and Kevin Breuninger contributed to this report

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