<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg" alt="" class="wp-image-524600" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Sept 13 (Reuters)&nbsp;&#8211;&nbsp;The following political and economic events, company announcements, equity and currency market moves may affect South African markets on Friday.



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



South Africa&#8217;s President Cyril Ramaphosa will sign a contested education bill into law.



Ramaphosa will engage with the media on the Seventh Administration and the government of national unity.



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



South Africa&#8217;s government will hold its weekly auction of inflation-linked bonds.



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



Retailer Mr Price will host a capital markets day.



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



South Africa&#8217;s rand inched higher against a weaker dollar on Thursday, with the next big local drivers &#8211; inflation data and an interest rate decision &#8211; due next week.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed up more than 1.1%. South Africa&#8217;s benchmark 2030 government bond was little moved, the yield at 9%.



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



The dollar slumped to its lowest this year on Friday versus the yen while gold hit a record high as investors ratcheted up bets for a super-sized Federal Reserve interest rate cut next week.



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



Wall Street&#8217;s main indexes closed higher on Thursday after the latest inflation data reinforced expectations for a 25-basis point rate cut by the Federal Reserve, while Moderna&#8217;s weak revenue forecast made it the S&amp;P 500&#8217;s biggest percentage loser.



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



Gold prices soared to an all-time high on Friday as the dollar weakened amid the prospect of a reduction in U.S. interest rates, while palladium has gained 15% so far this week.



&#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; Pravin Gordhan, former minister and struggle veteran, has died



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



&#8211; FirstRand opts for caution as it pencils in only three rate cuts for SA



&#8211; Radioactive waste, small reactors and geopolitics will shape SA&#8217;s nuclear plans



(Compiled by Tannur Anders; Editing by Mark Potter)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Sept 13

<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>



Sept 13 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Friday.



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



The dollar on Friday slumped against the yen while gold hit an all-time peak as investors ratcheted up bets for a super-sized Federal Reserve interest rate cut next week after media reports suggested the decision was a tough one for officials.



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



Oil prices rose on Friday, extending a rally sparked by output disruptions in the U.S. Gulf of Mexico, where Hurricane Francine forced producers to evacuate platforms before it hit the coast of Louisiana.



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



South Africa&#8217;s rand inched higher against a weaker dollar on Thursday, with the next big local drivers &#8211; inflation data and an interest rate decision &#8211; due next week.



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



The Kenyan shilling was flat on Thursday despite a slight pickup in foreign-currency demand, and traders said it was expected to remain in a tight range.



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



The Kenyan, Ugandan, Ghanaian and Zambian currencies are expected to be broadly stable in the next week to Thursday, while Nigeria&#8217;s could fall, traders said.



<h2 class="wp-block-heading" id="h-un-africa">UN AFRICA</h2>



The United States supports creating two permanent United Nations Security Council seats for African states and one seat to be rotated among small island developing states, U.S. Ambassador to the U.N. Linda Thomas-Greenfield announced on Thursday.



<h2 class="wp-block-heading" id="h-senegal-politics">SENEGAL POLITICS</h2>



Senegal President Bassirou Diomaye Faye on Thursday dissolved the opposition-led national assembly, clearing the way for early legislative elections on Nov. 17.



<h2 class="wp-block-heading" id="h-africa-mpox">AFRICA MPOX</h2>



The Africa Centres for Disease Control and Prevention (Africa CDC) is able to raise $600 million to fight a surging mpox outbreak on the continent, the agency&#8217;s head said on Thursday.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Sept 13

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-820x547.jpg" alt="" class="wp-image-530059" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-928551768-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Pravin Gordhan, South Africa&#8217;s minister for public enterprises, arrives on stage to speak during the future of South Africa conference in Cape Town, South Africa, on Wednesday, March 7, 2017. South Africa &#8220;could easily see&#8221; its economy expand by 2 percent to 3 percent in the next year or two as the government tackles graft at state-owned companies and implements plans to create jobs, Gordhan said. Photographer: Halden Krog/Bloomberg via Getty Images</figcaption></figure>



Former South African Finance Minister Pravin Gordhan has died after a short illness.



His family said Gordhan, who also previously served in the Ministries of Public Enterprises and Cooperative Governance, died in the early hours of Friday. He was 75.



Gordhan was lauded for standing up against corruption under former President Jacob Zuma during a period that came to be known as state capture when India’s Gupta brothers were accused of widespread bribery and corruption of government officials. He was a freedom fighter for the African National Congress during its struggle against apartheid rule.



“We have lost an outstanding leader whose unassuming persona belied the depth of intellect, integrity and energy with which he undertook his activism, his duty as a parliamentarian and his roles as a member of Cabinet,’’ President Cyril Ramaphosa said in a condolence message.



Gordhan was appointed as Commissioner of the South African Revenue Service (SARS) in 1999, after a period as Deputy Commissioner as South Africa transitioned to democratic rule. His decade at SARS was marked by improved tax collection and governance, which led to his appointment as Finance Minister in 2009 till 2014.



His family said Gordhan understood public service was for the greater good rather than self-enrichment.



“He understood that participation in government was not merely a technical or technocratic role. Rather, it was to advance the high public duty that the Constitution bestows on all of us: to uplift the poor, eliminate inequalities, fight racism, greed and corruption, and create a society where social justice and economic emancipation occur within a far-reaching transformation of our society.’’



Gordhan also briefly served as Minister of Cooperative Governance and Traditional Affairs from 2014 until 2015, and then as Minister of Public Enterprises from February 2018 until March this year when he retired.



“In the latter years of this service to the nation, and as a beacon of our fight against corruption, Pravin Gordhan stood up to derision and threats emanating from some in our nation who were scorched by his insistence that justice be dispensed against those who sought to undermine our democracy and raid our public resources and assets.’’



This is a breaking news story. Please check back for updates.

Pravin Gordhan

Former South African Finance Minister Pravin Gordhan Passes on

Why Everyone Is Flocking To North Carolina’s Tech Hub

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-820x547.jpg" alt="" class="wp-image-529796" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/TE64AB445NMSZBY6PXTJEU3TG4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, U.S., February 14, 2019. REUTERS/Brendan McDermid/File Photo</figcaption></figure>



JOHANNESBURG, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;U.S. e-commerce giant Amazon.com&nbsp;is in South Africa for the long run, its regional marketplace head said on Thursday, after its&nbsp;first foray&nbsp;into Sub-Saharan Africa four months ago.



Africa&#8217;s most advanced economy is usually seen as a good entry point for companies to expand into the continent and Amazon could be doing the same, analysts have said.



Its entry comes amid a sharp rise in online shopping in South Africa after the pandemic created an opportunity for e-commerce to finally take hold, with retailers including Naspers-owned&nbsp;e-commerce leader Takealot.com doubling down on investments in response.



Unlike the fanfare arrival that shoppers expected, Amazon launched in May with limited products on its website and little marketing while it worked to bring independent sellers onto its platform. The company has not given details of its plans.



Amazon&#8217;s Head of Marketplace for Sub-Saharan Africa, Suzelle Abe, hinted at a gradual approach, telling potential sellers at an e-commerce conference in Johannesburg that the retailer would keep building its online store with more categories and sellers.



&#8220;We want to get to know the customers. We want to get to know a lot of important learnings and through that, we keep on building,&#8221; Abe said.



&#8220;And yes, we&#8217;re definitely here for the long run.&#8221;



The retailer, which made South Africa its 23rd launch country, recently added jewellery and luggage to its growing list of categories, Abe added, with more to come.



Amazon has two fulfilment centres in South Africa, one in Johannesburg and one in Cape Town, and has partnered with click-and-collect companies such as Pargo and home courier companies for last-mile delivery.



Apart from Takealot.com and local retailers, Amazon is also competing with U.S. retail giant Walmart Inc, which owns food and general merchandise group Massmart, and low-price fast-fashion sites Shein and Temu, which have disrupted South Africa&#8217;s discount fashion market.



(Reporting by Nqobile Dludla; Editing by Mark Potter)

FILE PHOTO: FILE PHOTO: The logo of Amazon is seen on the door of an Amazon Books retail store in New York

Amazon is in South Africa for the long run, says marketplace head

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AU3TIBJDBBNTFCB7MP32IQ4O5A-1-820x429.jpg" alt="" class="wp-image-529778" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AU3TIBJDBBNTFCB7MP32IQ4O5A-1-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AU3TIBJDBBNTFCB7MP32IQ4O5A-1-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AU3TIBJDBBNTFCB7MP32IQ4O5A-1-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AU3TIBJDBBNTFCB7MP32IQ4O5A-1-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AU3TIBJDBBNTFCB7MP32IQ4O5A-1-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/AU3TIBJDBBNTFCB7MP32IQ4O5A-1.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man counts Nigerian naira notes in a market place in Yola, Nigeria, February 22, 2023. REUTERS/Esa Alexander/File Photo</figcaption></figure>



NAIROBI, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;The Kenyan, Ugandan, Ghanaian and Zambian currencies are expected to be broadly stable in the next week to Thursday, while Nigeria&#8217;s could fall, traders said.



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



Kenya&#8217;s shilling is expected to be little changed in the coming week, extending a recent period of stability that has lasted about a month.



LSEG data quoted the shilling at 128.50/129.50 per dollar, compared with 128.25/129.25 at last Thursday&#8217;s close.



&#8220;We&#8217;re stuck within this range,&#8221; one trader said. &#8220;The shilling has reached a stable zone.&#8221;



The local unit rallied strongly early this year as concerns eased that the East African country would default on a $2 billion Eurobond that matured in June, but it lost momentum from April onwards.



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



Nigeria&#8217;s naira could lose ground due to rising foreign-currency demand, despite the country raising $900 million from a domestic dollar bond sale.



The naira was quoted at 1,650 to the dollar on the official market on Thursday, LSEG data showed, the same rate at which the currency was changing hands in street trading.



That compares with a closing rate of around 1,592 naira a week earlier.



&#8220;The dollar raise in itself does not translate to an appreciation, until the central bank puts out those dollars to the market,&#8221; one trader said, adding: &#8220;Demand is overpowering supply&#8221;.



The trader said if the central bank increases the size of its interventions on the currency market that could support the naira, but its interventions had been too small.



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



Ghana&#8217;s cedi is seen trading relatively stable on the back of weak foreign-currency demand and continued central bank support.



LSEG data showed the cedi trading at 15.65 to the dollar versus 15.62 a week ago.



&#8220;The cedi traded relatively stable against the dollar in the past week, with very little interbank activity. Corporate demand has also decreased in the last few sessions,&#8221; said Sedem Dornoo, a senior trader at Absa Bank Ghana.



&#8220;We expect the pair to remain relatively stable in the coming week,&#8221; he added.



Another trader said the central bank&#8217;s interventions could anchor the pair in the short term.



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



Uganda&#8217;s shilling is seen trading in a tight range in the coming days, underpinned by subdued demand for dollars as most firms reserve their local currency for mid-month tax payments.



Commercial banks quoted the shilling at 3,715/3,725 to the dollar, compared to last Thursday&#8217;s close of 3,716/3,726.



&#8220;Mid-month tax payments are around the corner, I anticipate some support for the local unit from that,&#8221; one trader said.



He said the local unit was likely to oscillate in the 3,700-3,730 range against the dollar in the next week.



<h2 class="wp-block-heading" id="h-zambia">ZAMBIA</h2>



Zambia&#8217;s kwacha is likely to hold steady, supported by companies selling dollars as they prepare to pay taxes.



On Thursday the kwacha was quoted at 26.25 per dollar from 26.30 a week ago.



&#8220;We have VAT (Value Added Tax) payments due mid-next week and this should support the local unit,&#8221; one financial analyst said.



(Reporting by Hereward Holland, Chris Mfula, Chijioke Ohuocha, Elias Biryabarema and Christian AkorlieEditing by Alexander Winning)

AU3TIBJDBBNTFCB7MP32IQ4O5A (1)

Kenyan and Zambian currencies seen stable, Nigeria’s could weaken

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-820x536.jpg" alt="" class="wp-image-529745" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-1536x1005.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Shoppers look for items as they shop at an outlet of retailer Checkers in Sandton City mall, in Sandton, South Africa, August 28, 2024. REUTERS/Lelethu Madikane</figcaption></figure>



JOHANNESBURG, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;South African analysts, business people and trade unions further lowered their inflation expectations in the third quarter of this year, bringing them closer to the level targeted by the central bank, a quarterly survey showed on Thursday.



The results of the survey &#8211; a key data point for the central bank at its monetary policy meetings &#8211; are likely to reinforce expectations that the bank will cut its key rate for the first time in more than four years on Sept. 19.



The average inflation forecast for 2024 fell to 5.1% in the third quarter from 5.3% in the second quarter, the Bureau for Economic Research&#8217;s survey showed.



For 2025 the average dropped to 4.8% from 5.0% in the second quarter, and for 2026 it fell to 4.8% from 4.9%.



The South African Reserve Bank (SARB) tries to keep inflation close to 4.5%, the midpoint of its target band of 3%-6%. In explaining previous decisions to keep rates unchanged, it said inflation expectations were still uncomfortably high.



Forecasts for a September rate cut were buttressed by July&#8217;s year-on-year inflation falling to within a whisker of the midpoint at 4.6%. August&#8217;s inflation print is scheduled for release on Sept. 18, the day before the SARB&#8217;s rate announcement.



At the last monetary policy meeting in July two of the six members of the SARB&#8217;s Monetary Policy Committee voted for a 25 basis point cut, while four preferred no change, the eventual decision.



One worry for the central bank in the latest inflation expectations survey is that the inflation forecast of households rose steeply, reaching its highest level this year at 6.9% from 6.4% in the second quarter.



The rise was driven by the respondents in the low-income category, suggesting the poorest South Africans may be more exposed to price pressures.



(Reporting by Kopano Gumbi; Editing by Alexander Winning, William Maclean)

Shoppers look for items as they shop at an outlet of retailer Checkers

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-820x429.jpg" alt="" class="wp-image-519304" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller counts Kenya shilling notes inside the cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Sept 12 (Reuters) &#8211; The Kenyan shilling was flat on Thursday despite a slight pickup in foreign-currency demand, and traders said it was expected to remain in a tight range.



As of 0857 GMT, LSEG data showed the shilling at 128.50/129.50 to the dollar, the same as Wednesday&#8217;s closing level.



&#8220;We&#8217;re seeing some increased (dollar) demand from oils and corporates, but generally we&#8217;re stuck within a range. &#8230; It&#8217;s likely to stay that way for the next few days,&#8221; one trader said.



(Reporting by Hereward Holland; Editing by Alexander Winning)

LYEEWJTJKRPK3GJPCKWFP3EK7E

Kenyan shilling stable and seen staying that way, traders say

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg" alt="" class="wp-image-422955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, Sept 12 (Reuters) &#8211; The Ugandan shilling was little-changed on Thursday, but was under a little pressure from an uptick in appetite for hard currency by firms in the manufacturing and energy sectors, traders said.



At 0840 GMT commercial banks quoted the shilling at 3,715/3,725, compared to Wednesday&#8217;s close of 3,713/3,723.



(Reporting by Elias Biryabarema; Editing by Hereward Holland)

GettyImages-924883576-1

Ugandan shilling little-changed, under pressure

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-820x547.jpg" alt="" class="wp-image-529724" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-1920634146-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Mary Vilakazi, incoming chief executive officer of FirstRand Ltd., at the bank&#8217;s headquarters in Johannesburg, South Africa, on Thursday, Jan. 11, 2023. FirstRand is looking to purchase other African banks in countries where it operates as the continent&#8217;s biggest lender by market value seeks to expand. Photographer Leon Sadiki/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Sept 12 (Reuters) &#8211; South African lender FirstRand posted a 4% rise in annual profit on Thursday despite absorbing a 3 billion rand ($167 million) pre-tax accounting provision related to an investigation by Britain into the vehicle finance market.



Its normalised earnings rose to 38 billion rand in the year ended June 30 from 36.6 billion the previous year, the bank said.



Excluding the provision, normalised earnings grew by 10%, group CEO Mary Vilakazi said in a statement.



British lenders have been told by the Financial Conduct Authority to ensure they are adequately prepared to meet the potential costs of customer complaints arising from its review into the motor finance industry.



The regulator began looking into potential overcharging in the industry in January, amid rising tensions between thousands of consumers and lenders over commission arrangements.



In addition to the provision, 300 million rand of legal and professional fees were incurred in relation to the UK probe, the bank said.



($1 = 17.9160 rand)



(Reporting by Nqobile Dludla; editing by Jason Neely and Emelia Sithole-Matarise)

Africa’s Biggest Bank Seeks Acquisitions to Power Expansion Says Incoming CEO Mary Vilakazi

South African lender FirstRand’s profit rises despite UK motor loans charge

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108032514-1726060173981-gettyimages-2169789390-TARGET_FLAGSHIP-820x461.jpeg" alt="" class="wp-image-529707" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108032514-1726060173981-gettyimages-2169789390-TARGET_FLAGSHIP-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108032514-1726060173981-gettyimages-2169789390-TARGET_FLAGSHIP-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108032514-1726060173981-gettyimages-2169789390-TARGET_FLAGSHIP-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108032514-1726060173981-gettyimages-2169789390-TARGET_FLAGSHIP-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108032514-1726060173981-gettyimages-2169789390-TARGET_FLAGSHIP-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108032514-1726060173981-gettyimages-2169789390-TARGET_FLAGSHIP.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Inflation in August declined to its lowest level since February 2021, according to a Labor Department report Wednesday that also showed a key measure higher than expected, setting the stage for an expected quarter percentage point rate cut from the Federal Reserve.



The consumer price index, a broad measure of goods and services costs across the U.S. economy, increased 0.2% for the month, in line with the Dow Jones consensus, the Bureau of Labor Statistics reported.



That put the 12-month inflation rate at 2.5%, down 0.4 percentage point from the July level, slightly below the estimate for 2.6% and at its lowest level in 3½ years.



However, the core CPI, which excludes volatile food and energy prices, increased 0.3% for the month, slightly higher than the 0.2% estimate. The 12-month core inflation rate held at 3.2%, in line with the forecast.



The slight uptick in core CPI keeps the Fed on defense against inflation, likely negating the probability of a more aggressive interest rate when policymakers meet next Tuesday and Wednesday.



“This isn’t the CPI report the market wanted to see. With core inflation coming in higher than expected, the Fed’s path to a 50 basis point cut has become more complicated,” said Seema Shah, chief global strategist at Principal Asset Management.



Stocks slumped following the report, while Treasury yields were mixed. However, the market rebounded later in the day, recouping its losses as the major averages all turned positive.



In the fed funds futures market, traders priced in an 85% chance that the Federal Open Market Committee will approve a quarter percentage point, or 25 basis point, interest rate reduction when its meeting concludes Sept. 18, according to the CME Group’s FedWatch measure. A month ago, markets were leaning towards a 50 basis point cut.



“The number is certainly not an obstacle to policy action next week, but the hawks on the committee will likely seize on today’s CPI report as evidence that the last mile of inflation needs to be handled with care and caution – a formidable reason to default to a 25 basis points reduction,” Shah added.



While the numbers showed that inflation slowly continued to moderate, housing-related costs remain an issue. The shelter component of the CPI, which has about a one-third weighting in the index, climbed 0.5%, accounting for about 70% of the core increase. The shelter index was up 5.2% year over year.



Food prices rose just 0.1%, while energy costs slid 0.8%.



Elsewhere in the report, used vehicle prices decreased 1%, medical care services declined 0.1% and apparel prices increased 0.3%. Egg prices rose 4.8%.



Real earnings also increased for the month, with average hourly earnings outpacing the monthly CPI increase by 0.2%, the BLS said in a separate release. On a 12-month basis, inflation-adjusted average hourly earnings rose 1.3%.



The Fed’s attention of late, however, has turned to a slowing labor market. Job creation since April has slowed to nearly half what it was in the prior five months. Central bankers are saying that preventing a broader slowdown is now about as important as the fight against inflation, which in the summer of 2022 hit its highest level in more than 40 years.



Regardless of what the Fed decides when its meeting concludes next Wednesday, markets already are pricing in lower rates. Treasury yields, particularly at the 2- and 10-year duration, are at their lowest levels in more than a year. A recession indicator known as an inverted yield curve has reversed recently, a move that often portends both rate cuts from the Fed as well as a slowdown in the economy.



Wednesday’s report offered more evidence that inflation is waning, though it remains above the Fed’s 2% goal. There are pockets where prices either stayed elevated or turned higher.



“Although inflation has eased, it does not mean that the prices of things that people buy have actually fallen,” said Lisa Sturtevant, chief economist at Bright MLS. “It just means that prices are not increasing as fast. In fact, U.S. consumers now are paying more than 20% more for goods and services than they were before the pandemic.”



Airline fares, for instance, increased 3.9% in August after falling the previous five months. Motor vehicle insurance also continued its trek higher, rising 0.6% to push the 12-month increase to 16.5%. Hospital and related services costs jumped 0.4% and are up 5.8% from last year.



At the same time, a pullback in energy costs has helped bring down inflation figures. Gasoline was off 0.6% in August and is down 10.3% from a year ago, part of a 4% slide in the energy index that has included a 12.1% tumble for fuel oil prices.

108032514-1726060173981-gettyimages-2169789390-TARGET_FLAGSHIP

U.S. consumer prices rose 0.2% in August as annual inflation rate hits lowest since early 2021

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="569" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LEAHYNTWGJP2ZOZCNL6X2EGVRA-820x569.jpg" alt="" class="wp-image-529690" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LEAHYNTWGJP2ZOZCNL6X2EGVRA-820x569.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LEAHYNTWGJP2ZOZCNL6X2EGVRA-300x208.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LEAHYNTWGJP2ZOZCNL6X2EGVRA-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LEAHYNTWGJP2ZOZCNL6X2EGVRA-768x533.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LEAHYNTWGJP2ZOZCNL6X2EGVRA-1536x1065.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LEAHYNTWGJP2ZOZCNL6X2EGVRA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A woman arrives to harvest blueberries at Talana farm in rural Chegutu district, Zimbabwe, September 2, 2024. REUTERS/Philimon Bulawayo</figcaption></figure>



HARARE, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwean farmers aim to capitalize on increasing global demand for blueberries, but self-funded growers like Willard Zireva cite a lack of finance and minimal government support as barriers.



Despite being one of the fastest growing blueberry producers globally, with production doubling to 7,000 metric tons last year due to a favourable climate, Zimbabwean farmers are struggling to secure financing for their operations.



Zimbabwe&#8217;s horticultural exports, driven in part by blueberries, exceed $100 million annually. The sector&#8217;s exports, which peaked at $140 million in 1999, were disrupted when former President Robert Mugabe began the seizure of white-owned farms to resettle landless Black citizens.



Despite the sector&#8217;s recent growth, banks remain wary of financing agriculture due to uncertain land tenure, making it challenging for Black farmers like Zireva to expand.



Blueberry farming in Zimbabwe is currently dominated by the few remaining local white farmers, many of whom are looking for foreign investment to expand operations.



Zimbabwe&#8217;s banks do not accept the 99-year leases handed by the government to resettled farmers as collateral for borrowing.



The banks also tend to be reluctant to lend to farmers because the state has in the past arbitrarily acquired farmland, including from some Black commercial farmers.



Zireva cultivates 12 hectares of blueberry crops at his Talana farm 100 km (62 miles) west of capital city Harare, which he bought freehold in the 1990s before the land seizures.



He said that he had to rely on personal savings to plant his first crop after a local bank denied him funding.



<h2 class="wp-block-heading" id="h-massive-growth-opportunity">&#8216;MASSIVE GROWTH OPPORTUNITY&#8217;</h2>



&#8220;If funding is available, there is a massive growth opportunity,&#8221; he told Reuters.



Growing a hectare of blueberries in Zimbabwe requires at least $100,000 to import plants, peat pots from Europe, and special shades for the crops.



Other costs include refrigerated packaging warehouses and water resources.



&#8220;We need interventions and interventions have to come from government. Nobody else,&#8221; said Zireva, referring to concessional funding for farmers.



The finance and agriculture ministries, as well as the Bankers Association of Zimbabwe (BAZ), did not immediately respond to requests for comment.



Zireva&#8217;s farm aims to export 120 metric tons of blueberries to the United Kingdom and East Asia this year, but he says the demand far exceeds their ability to supply.



His farm requires $1.2 million to double output, he added.



&#8220;We are hoping that we can get funding next year to put in eight hectares so that we get to 20 (hectares),&#8221; Zireva said.



Zimbabwe&#8217;s Horticultural Development Council (HDC) said the lack of long-term finance was a significant barrier to the sector&#8217;s plans to double blueberry hectarage to 1,500 hectares by 2030.



HDC CEO Linda Nielsen told Reuters that without funding &#8220;we will see growth in the blueberries sector coming off on the tonnage side. We really need to grow the hectarage and maintain our market share.&#8221;



(Reporting by Nyasha Chingono; Editing by Olivia Kumwenda-Mtambo, William Maclean)

A woman arrives to harvest blueberries at Talana farm in rural Chegutu district

Zimbabwe blueberry farmers chase booming demand but face funding woes

<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, Sept 12 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was little changed in early trade on Thursday ahead of the release of local mining output figures and an inflation expectations survey.



At 0600 GMT the rand traded at 17.8925 against the dollar, not far from its previous close of 17.9050.



The rand has mainly tracked global markets this week, including closely watched U.S. inflation data and its implications for next week&#8217;s Federal Reserve meeting, but that could change on Thursday.



South Africa&#8217;s Bureau for Economic Research will release its third-quarter inflation expectations survey around 0800 GMT, showing how analysts, business people and trade union officials expect inflation to develop over the next three years.



Inflation expectations are an important data point for the central bank when it takes interest rate decisions. Its next decision is due to be announced on Sept. 19, with economists widely predicting the first rate cut in more than four years.



Statistics South Africa will publish July mining production numbers at about 0930 GMT.



Analysts polled by Reuters predict output will return to year-on-year growth after a decline in June, reflecting volatile conditions in Africa&#8217;s most industrialised economy.



South Africa&#8217;s benchmark 2030 government bond was relatively flat, with the yield at 8.995%.



(Reporting by Alexander Winning; Editing by David Goodman)

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

South African rand stable before mining data and inflation survey

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



KAMPALA, Sept 12 (Reuters) &#8211; The start of commercial crude oil production in Uganda is expected to propel economic growth into double digits in the next financial year, the International Monetary Fund (IMF) said.



Uganda&#8217;s economy would race to 10.8% growth in the 2025/2026 fiscal year which starts in July, up from a projection of 6.2% in the previous period, the IMF said in a report published late on Wednesday.



&#8220;Growth is expected to strengthen, boosted by the start of oil production, which will make (a) lasting improvement (to) the fiscal and current account balances,&#8221; the IMF said in the report.



After nearly 20 years of delay, the east African country is finally expected to commence production and export of crude oil next year from fields in its west.



Commercial reserves were discovered in 2006 but a range of factors including disputes with oil firms over development strategy and lack of requisite infrastructure had delayed production.



At peak Uganda is seen pumping 240,000 barrels of oil per day from its reserves, which are estimated at 6.5 billion barrels.



The IMF said Uganda&#8217;s foreign exchange (FX) reserves had continued to decline, and urged intervention by the central bank including a &#8220;reduction in government imports, along with stepped up FX purchases and greater exchange rate flexibility.&#8221;



The country&#8217;s FX reserves fell to $3.2 billion in June, down from $3.7 billion in December 2023, because of the high cost of servicing debt, the government&#8217;s inability to secure cheap credit, and limited hard currency purchases, the IMF said.



(Reporting by Elias Biryabarema; Editing by Hereward Holland and Lincoln Feast.)

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

Crude oil production to thrust Uganda’s economic growth into double digits – IMF

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



NAIROBI, Sept 12 (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>



Africa&#8217;s top public health body the Africa Centres for Disease Control and Prevention (Africa CDC) briefs reporters on mpox outbreaks on the continent.



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



Asian shares bounced on Thursday, tracking a tech-driven rally on Wall Street, while the dollar held onto gains after U.S. core inflation surprised slightly on the upside and dashed hopes of a large rate cut by the Federal Reserve next week.



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



Oil prices rose during Asian trade on Thursday, spurred by concerns of Hurricane Francine impacting output in the U.S., the world&#8217;s biggest crude producer, though worries of lower demand capped gains.



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



The South African rand held on to gains against the dollar on Wednesday after U.S. inflation data reinforced expectations that the Federal Reserve will opt for a smaller 25 basis point rate cut at its policy meeting next week.



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



The Kenyan shilling was unchanged against the U.S. dollar on Wednesday, LSEG data showed, extending a recent period of stability that has lasted about a month.



<h2 class="wp-block-heading" id="h-united-nations-africa">UNITED NATIONS AFRICA</h2>



The United States supports creating two permanent United Nations Security Council seats for African states and one seat to be rotated among small island developing states, U.S. Ambassador to the U.N. Linda Thomas-Greenfield will announce on Thursday.



<h2 class="wp-block-heading" id="h-kenya-airport">KENYA AIRPORT</h2>



Workers at Kenya&#8217;s main international airport ended a day-long strike on Wednesday, a union official said, after they were assured by the government that a plan to lease the airport to an Indian company would only proceed with the union&#8217;s approval.



((Compiled by Nairobi Newsroom))

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South African Markets – Factors to watch on Sept 13

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