<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 6 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, company announcement, equity and currency market moves may affect South African markets on Friday.



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



The South African Reserve Bank will publish data on the country&#8217;s foreign reserves for August.



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



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



African Rainbow Minerals (ARM) said on Friday its annual profit declined 43%, hit mainly by weaker prices for platinum group metals and coal.



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



The South Africa rand extended gains on Thursday as risk sentiment improved on bets for a deeper interest rate cut this month in the United States, analysts said.



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



Asian shares clung to tight ranges and the dollar nursed losses on Friday, with investors on tenterhooks ahead of U.S. jobs data that could decide the size and speed of coming rate cuts in the world&#8217;s largest economy.



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



The benchmark S&amp;P 500 index and the Dow ended lower in choppy trading on Thursday after a short-lived boost from a string of economic reports faded and investors eyed key jobs data due on Friday. The Nasdaq finished slightly higher.



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



Gold held below a one-week high on Friday and was on track for a weekly gain, as market participants focussed on U.S. jobs data that could shape the size of an expected rate cut this month. 



&#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; Justice minister Thembi Simelane to state her case over VBS claims



&#8211; Many moving parts but Treasury ‘still intends to meet fiscal targets’



&#8211; SA bonds rally as GNU helps brighten outlook



(Compiled by Tannur Anders)

South African Markets – Factors to watch on Sept 6

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NAE5BQB57NNCZEMRT4TCKAKPXA-820x550.jpg" alt="" class="wp-image-527482" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NAE5BQB57NNCZEMRT4TCKAKPXA-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NAE5BQB57NNCZEMRT4TCKAKPXA-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NAE5BQB57NNCZEMRT4TCKAKPXA-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NAE5BQB57NNCZEMRT4TCKAKPXA-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NAE5BQB57NNCZEMRT4TCKAKPXA-1536x1030.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NAE5BQB57NNCZEMRT4TCKAKPXA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People gather as volunteers search to retrieve the bodies of residents killed by a landslide due to heavy rainfall in a landfill known as Kiteezi that serves as garbage dumping site, in the Lusanja village, outside Kampala, Uganda August 10, 2024. REUTERS/Abubaker Lubowa//File Photo</figcaption></figure>



KAMPALA, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;The World Bank and French Development Agency (AFD) have given Uganda more than $600 million to fund infrastructure development and manage waste in the capital Kampala, the government and World Bank said on Thursday.



Ugandans have complained about waste management and the poor state of the roads in Kampala, which suffers chronic underfunding from the central government.



Last month a garbage landslide at a landfill site on Kampala&#8217;s outskirts buried houses as residents slept, killing at least 35 people.



A total of $566 million worth in funding, much of it credit, will come from the World Bank, and $42.7 million will be provided by ADF, the statements said.



&#8220;Rapid urban expansion has exposed significant gaps in infrastructure&#8221; the World Bank said.



Last year, the World Bank said it would stop lending to Uganda after the east African country passed a harsh anti-gay law.



In an emailed response to a Reuters&#8217; query the World Bank said the ban was still in effect but that the latest credit extended to Uganda was approved before the ban.



(Reporting by Elias Biryabarema; Editing by Hereward Holland and Barbara Lewis)

FILE PHOTO: Aftermath of a landslide due to heavy rainfall, in Kampala

World Bank, French Development Agency give Uganda aid of over $600 mln

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030079-1725572625010-gettyimages-2165961347-US_JOBS-820x461.jpeg" alt="" class="wp-image-527463" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030079-1725572625010-gettyimages-2165961347-US_JOBS-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030079-1725572625010-gettyimages-2165961347-US_JOBS-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030079-1725572625010-gettyimages-2165961347-US_JOBS-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030079-1725572625010-gettyimages-2165961347-US_JOBS-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030079-1725572625010-gettyimages-2165961347-US_JOBS-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108030079-1725572625010-gettyimages-2165961347-US_JOBS.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Wall Street is gearing up for one of the most important economic releases of the year Friday, when the Labor Department puts out a jobs report expected to go a long way in determining the future of Federal Reserve policy.



The Wall Street consensus is for nonfarm payrolls growth of 161,000 for August and a slight decline in the unemployment rate to 4.2%, according to Dow Jones.



However, recent data, including a massive downward revision to previous counts, has pointed to a sharp slowdown in hiring and has put some downside risk to that forecast.



In turn, markets are certain the Fed will start lowering interest rates in a couple weeks, with the possibility of a jumbo cut depending on what Friday’s report shows.



“The labor market has cooled faster than we originally had been told, so that’s what’s calling [Friday’s report] into question,” said Giacomo Santangelo, economist at job search site Monster. “What the Fed is going to do in response, how are they going to adjust rates, that’s why we are having this conversation.”



While job growth has been tailing off through much of 2024, the deceleration hit home for the market with a July report that showed payroll growth of just 114,000. That wasn’t even the lowest number of the year, but it followed a Fed meeting that stirred up sentiment the central bank was being too complacent about a weakening economy and might hold interest rates high for too long.



What has followed has been a series of reports indicating that while the economy is still on its feet, hiring is decelerating, the manufacturing sector is fading further into contraction, and it’s time for the Fed to start cutting before it risks overdoing its inflation fight and dragging the economy into recession.



The latest bad news came Thursday when payrolls processing firm ADP put August private job growth at just 99,000, the smallest gain since January 2021.



<h2 class="wp-block-heading" id="h-contemplating-the-fed-s-next-move"><a></a>Contemplating the Fed’s next move</h2>



“If they’re too aggressive for too long a period of time, without easing on monetary policy, this could lead to the giant ‘R’ and we don’t even want to say the word,” Santangelo said, referring to “recession.” “If God forbid this does lead to an economic downturn, all fingers are going to point toward the Fed.”



Markets consequently are expecting the Fed to lower benchmark rates by at least a quarter percentage point when its next meeting concludes Sept. 18, with the possibility rising of a half-point reduction. The Fed hasn’t reduced its benchmark rate by half a point since the emergency cuts during the early Covid days.



Traders are pricing in a succession of cuts that would shave about 2.25 percentage points off the fed funds rate through 2025, futures contracts show. The benchmark overnight borrowing rate is currently targeted in a range between 5.25%-5.5%.



Such an aggressive easing posture would indicate not merely an effort to normalize rates from their 23-year high but also reflect a deeper economic pullback. In the more immediate term, though, the move lower would be targeted more at a labor market still feeling aftershocks from the Covid pandemic.



Monster job search data is still heavily tilted toward health care-related positions, which have flourished in the current era, while the most common search terms are “work from home,” “part time” and “remote,” reflecting the move to a hybrid environment.



Santangelo said there also is still a substantial skills gap in the labor market, despite a sharp narrowing in the gulf between open jobs and available workers, which has contracted to about 1.1 to 1 from 2 to 1 a couple years ago.



“The jobs that are being created are not necessarily suited for the people who are getting laid off. We still have a huge skills gap. The easiest place to see that is health care,” he said. “The No.1 thing that job seekers are looking for is more flexibility. There’s that kind of gap between employers and job seekers also.”



<h2 class="wp-block-heading"><a></a>Worries from job seekers</h2>



Workers in turn are getting more pessimistic about the state of play in the labor market.



The Zeta Economic Index, which uses artificial intelligence to track various economic metrics, is showing that concerns about jobs are accelerating — even though the broader economy is still performing well.



A measure of job market sentiment fell 1% in August and is down 4.6% from a year ago, Zeta figures show. The gauge’s “new mover index” dropped 9.9% on the month, reflecting worries over job stability.



“Despite a resilient economy &#8230; job market concerns persist. The job sentiment dip, paired with the mixed bag of consumer behavior, signals an ongoing caution in the workforce,” said David Steinberg, co-founder and chairman of Zeta Global, which compiles the index. “As the economy shows signs of a ‘soft landing,’ the persistent caution regarding job stability continues to temper broader economic optimism.”



The Zeta data mirrors a recent Conference Board survey, which reflected a sharp narrowing of the gap between respondents saying jobs were easy to find as opposed to hard to get.



Markets also will be watching the wage component of Friday’s report, though that has become less of an issue lately as inflation has moderated.



The consensus is for average hourly earnings to post a 0.3% increase on the month and a 3.7% year-over-year move, both 0.1 percentage point higher than July.

108030079-1725572625010-gettyimages-2165961347-US_JOBS

Friday’s jobs report for August is going to be huge. Here’s what to expect

How Gen Z Is Buying Homes Younger Than Millennials And Boomers Did

<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/MQSXKM664RNJTKI3VB6WEU7UEM-1-820x429.jpg" alt="" class="wp-image-527231" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM-1-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM-1-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM-1-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM-1-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MQSXKM664RNJTKI3VB6WEU7UEM-1.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Africa&#8217;s President Cyril Ramaphosa arrives at the Beijing Capital International Airport, ahead of the 2024 Summit of the Forum on China-Africa Cooperation (FOCAC) in Beijing, China September 2, 2024. REUTERS/Tingshu Wang/Pool</figcaption></figure>



BEIJING, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;South African President Cyril Ramaphosa said on Thursday that he did not believe Chinese investments in Africa were pushing the continent into a &#8220;debt trap&#8221; but were instead part of a mutually beneficial relationship.



Ramaphosa made the remarks on the sidelines of a China-Africa summit in Beijing, where delegates from more than 50 African nations gathered this week.



&#8220;I don&#8217;t necessarily buy the notion that when China (invests), it is with an intention of &#8230; ensuring that those countries end up in a debt trap or in a debt crisis,&#8221; Ramaphosa said, when asked by reporters about China&#8217;s pledge at the summit of $51 billion in new funding for Africa.



Without providing details, Ramaphosa also said South Africa had reached agreement with China on aspects of its energy security.



Africa&#8217;s most industrialised economy has been plagued for years by rolling power blackouts that have constrained economic growth.



(Reporting by Joe Cash; Writing by Tannur Anders and Bhargav Acharya; Editing by Alexander Winning)

MQSXKM664RNJTKI3VB6WEU7UEM (1)

South African president: China not pushing Africa into ‘debt trap’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S7AF7BNBK5OYLGLCXAI33SOPYA-820x548.jpg" alt="" class="wp-image-527198" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S7AF7BNBK5OYLGLCXAI33SOPYA-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S7AF7BNBK5OYLGLCXAI33SOPYA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S7AF7BNBK5OYLGLCXAI33SOPYA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S7AF7BNBK5OYLGLCXAI33SOPYA-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S7AF7BNBK5OYLGLCXAI33SOPYA-1536x1027.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/S7AF7BNBK5OYLGLCXAI33SOPYA.jpg 1616w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Executive Secretary of the UN Framework Convention on Climate Change (UNFCCC), Simon Stiell, talks to the press on the sidelines of the Copenhagen Climate Ministerial, in Helsingor, Denmark March 21, 2024. REUTERS/Ali Withers/File Photo</figcaption></figure>



NAIROBI, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;The impact of global warming is costing African nations up to 5% of their economic output, the United Nations climate chief said on Thursday, calling for more investments to help adapt to climate change.



The 54-nation continent, which has borne the brunt of climate change despite releasing far less polluting emissions than the industrialised world, receives just 1% of annual global climate finance.



&#8220;The climate crisis is an economic sinkhole, sucking the momentum out of economic growth,&#8221; Simon Stiell, executive secretary of the U.N. Framework Convention on Climate Change (UNFCCC), told a meeting of African ministers of environment in Abidjan, Ivory Coast.



African governments and their climate negotiators are considering various strategies at the pre-COP29, or Conference of the Parties, preparatory meeting in the West African country.



Although the continent has attracted new investors in climate mitigation and adaptation projects in recent years, it gets a very small portion of the $100 billion in financing available globally, African government officials say.



That is a drop in the ocean of the $1.3 trillion required, the officials say, without providing a time frame for by when the amount would be needed.



&#8220;Africa&#8217;s vast potential to drive forward climate solutions is being thwarted by an epidemic of underinvestment,&#8221; Stiell said.



The required investments include $4 billion annually to eliminate the use of traditional fuel for cooking on the continent, such as wood, which contributes to greenhouse gas emissions, Stiell said.



&#8220;Of the more than $400 billion spent on clean energy last year, only $2.6 billion went to African nations,&#8221; he said.



Climate change has been blamed for protracted drought and bouts of catastrophic flooding across Africa that have hit food production, driving up commodity prices and worsening hunger.



Stiell said there have been growing calls for Africa to secure more climate financing in the run-up to COP29 in Baku, where nations will be looking for consensus on new international climate finance goals.



&#8220;We must use innovative financing solutions for adaptation without exacerbating debt burdens,&#8221; Hanan Morsy, chief economist at the United Nations Economic Commission for Africa (UNECA), told a climate finance conference last week.



Such innovations include debt refinancing and swaps as well as&nbsp;carbon markets, she said.



(Reporting by Duncan Miriri; editing by Mark Heinrich)

Climate ministers meet in Denmark ahead of COP29

Climate change costs Africa up to 5% of GDP, UN climate head says

India and Singapore agree to cooperate during Modi visit

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/1.png" alt="" class="wp-image-527190" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/1.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/1-300x200.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/1-135x90.png 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/1-768x512.png 768w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



The potential for mobile money and digital payments to drive financial inclusion is immense. We can see this potential being unlocked on the African continent as it accounts for <a href="https://african.business/2023/05/technology-information/west-africa-worlds-largest-growing-mobile-money-market-in-2022-says-gsma-report#:~:text=Despite%20this%20growth%2C%20East%20Africa,registered%20accounts%20in%20West%20Africa.">70%</a> of the world’s $1 trillion mobile money value and registered a <a href="https://www.gsma.com/sotir/wp-content/uploads/2024/03/GSMA-SOTIR-2024_Report.pdf">12%</a> growth in mobile money accounts to 1.75 billion in 2023.



This is opening a number of new opportunities for economic growth and development as more robust and connected payment networks are breaking down geographical barriers, opening up access to new markets and enabling anyone to send and receive payments quickly and easily from and to anywhere in the world.



However, these significant benefits are largely being realized and felt in Africa’s larger, and key, markets such as Nigeria, South Africa, and of course Kenya- where mobile money was first launched and popularized on the continent. While these markets have reached greater levels of digital payments maturity, smaller and more underdeveloped markets are often passed over, leaving many still excluded from economic participation and financial freedom.



And yet, the truly transformative power of mobile money and digital payments can be most realized in these overlooked economies where the reliance on cash, a lack of traditional bank accounts due to limited infrastructure and access, and the substantial penetration of smartphones and increasing internet connectivity have created the ideal confluence of circumstances that will pave the way for a more inclusive and resilient financial future.



<h2 class="wp-block-heading" id="h-realizing-the-enabling-power-of-digital-payments">Realizing the enabling power of digital payments</h2>



The biggest drivers of mobile money adoption in Africa are its accessibility and ease of use. Unlike traditional financial services, there’s no need for extensive paperwork, a credit and financial history, or a physical presence within a brick-and-mortar branch to gain access to these services.



This low barrier to entry, along with mobile money’s ability to enable economies beyond just transactions and empower both individuals and enterprises, makes it particularly impactful for underserved markets. Within these regions, mobile money and the digital payments ecosystem have the power to serve as catalysts for economic growth, poverty reduction, and enable marginalized communities with the financial freedom to manage their day-to-day lives, start or expand their businesses, and invest in their futures.



<h2 class="wp-block-heading" id="h-a-concerted-effort-towards-a-single-goal">A concerted effort towards a single goal</h2>



It’s important that all levels of an economy work towards achieving the crucial objective of financial inclusion. Collaboration is a key component in creating and maintaining an environment that creates more opportunities for inclusive growth and ensures economic resilience.



Not only do governments play a pivotal role in developing and implementing the policies and regulations that foster a supportive framework for financial services, but investment from both the public and private sectors is essential to building the necessary digital payments infrastructure that will underpin financial inclusion on the continent. Meanwhile, fintech firms can continue to drive innovation in this space that will achieve the desired convenience, speed and accessibility within the payments space.



We can see this value already starting to be realized across smaller markets like Eswatini where the <a href="https://www.afi-global.org/wp-content/uploads/2023/07/Eswatini-Fintech-Landscape-Report.pdf">Central Bank established a FinTech unit</a> to spearhead the development of digital payments in the country in 2018; in South Sudan where the <a href="https://www.gsma.com/solutions-and-impact/connectivity-for-good/mobile-for-development/blog/south-sudan-mobile-moneys-role-in-the-road-to-recovery/">introduction of mobile money in 2017</a> has enabled development organizations to distribute cash assistance securely; and Somalia which <a href="https://qz.com/africa/2152271/somalia-changed-the-face-of-money-transfers-worldwide#:~:text=Somalia's%20central%20bank%20awarded%20Hormuud,for%20people%20across%20the%20country">recently enabled digital payments</a> to be made between the country’s banks, making payments easier.



<a></a>In Ethiopia, non-banks were enabled to provide mobile money services in 2020 as mobile money services could lift 700 000 people out of poverty, add $5.3 billion to the country’s economy, increase tax revenue by $300 million, and essentially position the country to adapt to economic downturns according to the <a href="https://www.gsma.com/solutions-and-impact/connectivity-for-good/mobile-for-development/wp-content/uploads/2023/06/GSMA_Mobile-money-in-Ethiopia-Advancing-financial-inclusion-and-driving-growth-report.pdf">GSMA’s 2023 Mobile Money in Ethiopia report</a>. Recognising this period as a key moment in the country’s transformation into a financially inclusive economic powerhouse, Onafriq, Africa’s largest payments gateway, also strengthened its presence in Ethiopia through a number of partnerships with financial institutions, mobile network operators, and other key decision makers. This includes partnerships with Ethio telecom and M-PESA Safaricom to enhance and streamline remittance flows and address the shortage of forex while providing customers with much-needed funds.



It’s clear then that when all these elements work in harmony, they can break down barriers to financial access, enabling people and businesses to participate more fully in the economy, thus driving sustainable development and economic growth in these underserved regions. Investing in these smaller, underserved markets &#8211; which represent a significant portion of the continent’s population &#8211; is simply integral to realizing true financial inclusion across Africa.



When everyone can access financial services, we can foster inclusive growth, stimulate local economies, and open up access to new markets and opportunities, connecting the continent through sustainable economic development.

True financial inclusion calls for smaller markets to receive equal attention to larger ones

<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/HWPGQTLYHJLYXAPSSSZN7XH4SU-820x547.jpg" alt="" class="wp-image-527159" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWPGQTLYHJLYXAPSSSZN7XH4SU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWPGQTLYHJLYXAPSSSZN7XH4SU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWPGQTLYHJLYXAPSSSZN7XH4SU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWPGQTLYHJLYXAPSSSZN7XH4SU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWPGQTLYHJLYXAPSSSZN7XH4SU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HWPGQTLYHJLYXAPSSSZN7XH4SU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of the Pretoria skyline with smog in the air taken from the Union Buildings in Pretoria, South Africa, June 19, 2024. PHILL MAGAKOE/Pool via REUTERS/File Photo</figcaption></figure>



JOHANNESBURG, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s current account deficit narrowed in the second quarter, to 0.9% of gross domestic product (GDP) from 1.5% of GDP in the first quarter, central bank data showed on Thursday.



In rand terms the current account deficit narrowed to 64.6 billion rand ($3.62 billion) in April-June, from 106.9 billion rand in the previous three-month period.



The trade surplus widened further to 187.4 billion rand in the second quarter from 165.8 billion rand in the first quarter.



&#8220;The increase in the value of exports of goods and services in the second quarter of 2024 reflected higher prices while the increase in imports of goods and services reflected both higher volumes and prices,&#8221; the South African Reserve Bank said in a statement.



South Africa&#8217;s economy grew 0.4% in the second quarter, statistics agency data showed on Tuesday, supported by higher consumer spending and power availability, but output declines in agriculture, mining and transport meant growth was slightly weaker than expected.



($1 = 17.8493 rand)



(Reporting by Kopano Gumbi; Additional reporting by Tannur Anders; Editing by Alexander Winning)

Inauguration of South Africa’s Cyril Ramaphosa as President at the Union Buildings, in Pretoria

South Africa’s current account deficit narrows again in second quarter

<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/KIHNVAE5M5NLLFD5WGKGLZZIDA-820x536.jpg" alt="" class="wp-image-527142" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KIHNVAE5M5NLLFD5WGKGLZZIDA-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KIHNVAE5M5NLLFD5WGKGLZZIDA-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KIHNVAE5M5NLLFD5WGKGLZZIDA-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KIHNVAE5M5NLLFD5WGKGLZZIDA-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KIHNVAE5M5NLLFD5WGKGLZZIDA-1536x1003.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KIHNVAE5M5NLLFD5WGKGLZZIDA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The sun is reflected on railway tracks during sunrise in Harare, Zimbabwe, August 4, 2018. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



HARARE, Sept 5 (Reuters) &#8211; Zimbabwe&#8217;s state-owned railway operator has opened its network up to private players, including a unit of South Africa&#8217;s Grindrod, as it seeks to boost freight volumes that had collapsed after decades of underinvestment, an official said.



National Railways of Zimbabwe hauled 12 million tons of cargo annually at its 1990s peak, but now manages less than 3 million tons owing to a lack of locomotives and poor maintenance of its rail infrastructure.



The collapse also followed a sharp decline in agricultural and mineral output, triggered by the violent seizure of white-owned farms championed by Zimbabwe&#8217;s former leader Robert Mugabe in 2000.



However, mineral output is on the rebound, mainly driven by chrome and lithium demand from China.



Chinese companies such as Tsingshan Holdings, Sinosteel, Sinomine 002738.SZ, Zhejiang Huayou Cobalt 603799.SS and Chengxin Lithium 002240.SZ have in recent years established iron ore, steel, chrome and lithium operations in Zimbabwe.



They export the minerals to China through Mozambique&#8217;s ports, and the growing commodity export volumes exceed the NRZ&#8217;s current capacity. The state-owned group is now looking to restore its capacity with the aid of private companies.



&#8220;Last year we uplifted 2.8 million tons against available business of 3 million tons,&#8221; NRZ spokesperson Andrew Kunambura told Reuters in an interview on Wednesday.



&#8220;So these private companies are coming in with their locomotives and wagons to augment what we have.&#8221;



Grindrod, through its Zimbabwean subsidiary Beitbridge Bulawayo Railway, has deployed three locomotives and 150 wagons since March as part of the arrangement.



The South African logistics company is positioning itself for freight rail partnerships in southern Africa as under-funded state-owned operators open up their creaking networks to private investors.



The mineral-rich region holds some of the world&#8217;s biggest deposits of copper and lithium, needed for cleaner energy, and is seeing growth in new mining projects which require expanded rail capacity.



Grindrod has restructured its rail business to take advantage of emerging market opportunities in the region, CEO Xolani Mbambo told analysts last week.



The company has recently agreed a partnership with the DRC&#8217;s inland railway company and says it is ready to partner South Africa&#8217;s Transnet, which also plans to open up its network to private players.



(Reporting by Nelson Banya)

The Wider Image: Zimbabwe’s dingy trains mirror economic decline

Zimbabwe turns to private firms to boost freight rail volumes

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017. REUTERS/Thomas White/Illustration</figcaption></figure>



JOHANNESBURG, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;The South Africa rand extended gains in early trade on Thursday, as risk sentiment improved on bets of a deeper rate cut this month in the United States, analysts said.



At 0632 GMT, the rand traded at 17.82 against the dollar, about 0.3% firmer than its Wednesday closing level.



The local unit strengthened against a weaker dollar on Wednesday, after U.S. job openings dropped to a 3-1/2-year low in July.



Andre Cilliers, currency strategist at TreasuryONE, said bets of a deeper 50 basis rate cut by the Federal Reserve increased after the data.



&#8220;Hopes of a larger Fed rate cut have seen risk sentiment improve and the dollar retreat&#8230; We expect the local currency to consolidate further within the recent R17.70/R18.00 range ahead of tomorrow&#8217;s payroll numbers,&#8221; Cilliers said.



Markets will look to a slew of U.S. jobs data set for Thursday and Friday for further hints on the Fed&#8217;s interest rate path.



Like other risk-sensitive currencies, the rand often takes cues from global drivers like U.S. monetary policy in addition to local factors.



Domestic investors will focus on South Africa&#8217;s second quarter current account data, set for 0900 GMT on Thursday.



South Africa&#8217;s benchmark 2030 government bond  was stronger in early deals, as the yield slipped 3.5 basis points to 9%.



(Reporting by Tannur Anders; Editing by Michael Perry)

Illustration photo of South African rand

South African rand gains on improved risk sentiment, Q2 current account data ahead

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



Sept 5 (Reuters) &#8211; South Africa&#8217;s Harmony Gold increased its dividend on Thursday as its annual profit more than doubled from the prior year, boosted by higher gold production, better grades and record prices.



Harmony&#8217;s headline earnings per share &#8211; a profit measure &#8211; jumped to 18.52 rand ($1.04) in the year ended June 30, up from 8 rand in the previous year.



The top gold producer in South Africa by volume declared a final dividend of 0.94 rand per share, up from 0.75 rand.



Harmony&#8217;s gold production rose 6% to 1.56 million ounces, surpassing its target of 1.55 million ounces. Its average gold price increased 16% as bullion prices surged to record highs.



Higher gold prices and a 6% improvement in underground recovered grades drove Harmony&#8217;s operating free cash flows to a record 12.7 billion rand ($710.51 million).



($1 = 17.8740 rand)



(Reporting by Nelson Banya; Editing by Christian Schmollinger and Subhranshu Sahu)

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

S.Africa’s Harmony Gold boosts dividend after profit more than doubles

<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.jpg" alt="" class="wp-image-524583" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, company announcements, equity and currency market moves may affect South African markets on Thursday.



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



Q2 current account data



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



South Africa&#8217;s Harmony Gold increased its dividend on Thursday as it reported a 132% jump in annual profit, boosted by higher gold production, better grades and record prices.



South African insurer Sanlam  will report its half-year results.



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



The South African rand strengthened against a weaker dollar on Wednesday, after U.S. jobs data showed a softening labour market.



On the stock market, the Top-40 index closed 0.37% lower.



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



Asian share markets tried to regain their footing on Thursday after a steep sell-off, while a rally in Treasuries dented the dollar and lifted the yen as U.S. economic worries raised the odds of the Federal Reserve going big on rate cuts.



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



U.S. stocks finished slightly lower in choppy trading on Wednesday following labor market data and comments from a Federal Reserve official that bolstered the case for an interest rate cut.



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



Gold was little changed on Thursday as investors kept to the sidelines ahead of U.S. payrolls data that could provide more clues on the size of an expected rate cut this month.



&#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; Rich South Africans flock to Portugal for stability



&#8211; IMF adopts a more upbeat tone on SA



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Sept 5

<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 5 (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-global-markets">GLOBAL MARKETS</h2>



Asian share markets tried to regain their footing on Thursday after a steep sell-off, while a rally in Treasuries dented the dollar and lifted the yen as U.S. economic worries raised the odds of the Federal Reserve going big on rate cuts.



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



Oil prices edged up after plunging to multi-month lows previously as major producers may delay an output increase planned for next month and U.S. inventories fell, though the gains were limited by persistent demand concerns.



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



The South African rand strengthened against a weaker dollar on Wednesday, after U.S. jobs data showed a softening labour market.



<h2 class="wp-block-heading" id="h-china-africa-debt">CHINA AFRICA DEBT</h2>



A China-Africa summit in Beijing this week takes place as a continent slowly emerging from a series of defaults seeks to define its future cooperation with the Asian nation that partly fuelled its debt binge and now faces its own economic headwinds.



<h2 class="wp-block-heading" id="h-china-africa-financing">CHINA AFRICA FINANCING</h2>



Chinese President Xi Jinping on Thursday pledged $51 billion in fresh financing to Africa, support for 30 infrastructure projects across the resource-rich continent, and promised to create at least 1 million jobs.



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



Kenya&#8217;s shilling firmed slightly against the dollar on Wednesday, LSEG data showed.



<h2 class="wp-block-heading" id="h-kenya-private-sector-activity">KENYA PRIVATE SECTOR ACTIVITY</h2>



Kenya&#8217;s private sector activity picked up in August as firms recovered from disruption caused by anti-government protests the previous month, a survey showed on Wednesday.



<h2 class="wp-block-heading" id="h-mtn-cameroon">MTN CAMEROON</h2>



The Cameroon subsidiary of South African mobile operator MTN Group said late on Tuesday it won&#8217;t exit the country despite the seizure of its bank accounts since 2022 under a Cameroon court order.



<h2 class="wp-block-heading" id="h-mauritius-china-currency-swap">MAURITIUS CHINA CURRENCY SWAP</h2>



Mauritius and China&#8217;s central banks have signed a three-year currency swap agreement worth 13 billion Mauritian rupees or 2 billion Chinese yuan (about $281 million), the Bank of Mauritius said on Wednesday.



(Compiled by Nairobi Newsroom)

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Sept 5

<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/CXVAOPAQTVLKREUIGTWRSKEOGU-820x547.jpg" alt="" class="wp-image-527088" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/CXVAOPAQTVLKREUIGTWRSKEOGU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China&#8217;s President Xi Jinping and his wife Peng Liyuan pose with Secretary-General of the United Nations Antonio Guterres for a photography during a reception at the Forum on China-Africa Cooperation (FOCAC) in the Great Hall of the People in Beijing, China, 04 September 2024. ANDRES MARTINEZ CASARES/Pool via REUTERS</figcaption></figure>



BEIJING, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;African countries&#8217; inadequate access to debt relief and scarce resources is a recipe for social unrest, United Nations Secretary-General Antonio Guterres said on Thursday, proposing fresh reforms to the international financial architecture.



A growing debt crisis across the 1 billion-strong continent has seen a conflagration of civil unrest in recent months, after protests in Kenya, where police clashed with demonstrators rallying against proposed tax hikes, inspired people to take to the streets in Nigeria and Uganda over the cost of living.



African nations have been seeking to restructure their debts through a rework architecture designed by the G20 called the &#8216;Common Framework,&#8217; but the scheme did not as expected expedite talks between a myriad of leaders from Chinese state-owned banks to London-based asset managers and New York banks.



Zambia in June became the first country to successfully restructure its debt through the scheme, more than three years after it defaulted on its loans.



Guterres told a major China-Africa cooperation summit in Beijing that Africa&#8217;s debt &#8220;situation is unsustainable and a recipe for social unrest&#8221;.



&#8220;They have no access to effective debt relief, scarce resources, and clearly insufficient concessional funding to respond to the basic needs of their population,&#8221; he said.



Guterres proposed &#8220;deep reforms to the outdated, ineffective and unfair international financial architecture&#8221; and further stimulus &#8220;to provide developing countries with the liquidity they need while seeking medium- and long-term solutions.&#8221;



Beijing, the world&#8217;s biggest bilateral lender, is hosting 50 African nations for the ninth Forum on China-Africa Cooperation Summit this week, at which China&#8217;s President Xi Jinping pledged 360 billion yuan ($50.70 billion) in fresh financing to the continent over the next three years.



China approved loans worth $4.61 billion to Africa last year, the first annual increase since 2016.



Guterres praised China&#8217;s initiatives across Africa and said they could drive a &#8220;renewable energy revolution&#8221; and &#8220;be a catalyst for key transitions on food systems and digital connectivity.&#8221;



Angola&#8217;s finance minister on Tuesday told Reuters that Luanda was considering proposals from Beijing, Brussels and elsewhere, with a view to quickly securing funds to help bring down inflation and do more through public-private partnerships.



($1 = 7.1005 Chinese yuan renminbi)



(Reporting by Joe Cash; Editing by Jacqueline Wong and Michael Perry)

Forum on China-Africa Cooperation in Beijing

UN chief warns Africa’s inadequate access to debt relief is recipe for social unrest

<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/BZN7UA65UJPHFLAB6CZSRO237U-820x547.jpg" alt="" class="wp-image-527085" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BZN7UA65UJPHFLAB6CZSRO237U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China&#8217;s President Xi Jinping delivers a keynote speech at the opening ceremony of the ninth Forum on China-Africa Cooperation (FOCAC) Summit, at the Great Hall of the People in Beijing, China September 5, 2024. REUTERS/Florence Lo</figcaption></figure>



BEIJING, Sept 5 (Reuters)&nbsp;&#8211;&nbsp;President Xi Jinping pledged on Thursday to step up China&#8217;s support to the world&#8217;s fastest-growing continent with funding of nearly $51 billion, backing for more infrastructure initiatives and a promise to create at least 1 million jobs.



The world&#8217;s biggest two-way lender, Beijing showed a desire to move away from funding big-ticket infrastructure and focus instead on selling to developing economies the advanced and green technologies in which Chinese firms have invested heavily.



Still, Xi told delegates from more than 50 African nations that the world&#8217;s second-largest economy would carry out 30 infrastructure projects across the resource-rich continent, and offer 360 billion yuan ($50.70 billion) in financial assistance.



&#8220;China is ready to deepen cooperation with Africa in industry, agriculture, infrastructure, trade and investment,&#8221; Xi told delegates at a major China-Africa summit in Beijing.



He called for &#8220;a China-Africa network featuring land-sea links and co-ordinated development,&#8221; as he told Chinese contractors to return to the 1-billion-strong continent, after the lifting of COVID-19 curbs that disrupted its schemes.



Last year, China approved loans worth $4.61 billion to Africa, in the first annual increase since 2016.



Xi said 210 billion yuan of the financing pledge would be disbursed through credit lines and at least 70 billion in fresh investment by Chinese companies, with smaller amounts provided through military aid and other projects.



The Forum on China-Africa Cooperation Summit, held this year in the Chinese capital, chalks out a three-year programme for China and every African state bar Eswatini, which retains ties to Taiwan.



Besides 30 infrastructure connectivity projects, Xi added, &#8220;China is ready to launch 30 clean energy projects in Africa,&#8221; offering to co-operate on nuclear technology and tackle a power deficit that has delayed industrialisation efforts.



But the Chinese leader did not reiterate his pledge at the 2021 forum in Dakar for the Asian giant to buy $300 billion worth of African goods, pledging only to unilaterally expand market access.



Analysts say Beijing&#8217;s phytosanitary rules for market access are too strict, making China unable to meet that promise.



&#8220;We are ready to assist in the development of the African Continental Free Trade Area, and deepen logistics and financial co-operation for the benefit of trans-regional development in Africa,&#8221; Xi added.



($1=7.0976 Chinese yuan renminbi)



(Reporting by Laurie Chen; Writing by Joe Cash; Editing by Jacqueline Wong and Michael Perry)

China offers Africa $51 bln in fresh funding, promises a million jobs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg" alt="" class="wp-image-493882" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., as IMF Managing Director Christine Lagarde meets with Argentine Treasury Minister Nicolas Dujovne September 4, 2018. REUTERS/Yuri Gripas</figcaption></figure>



JOHANNESBURG, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said on Wednesday that South Africa needed to pursue ambitious fiscal consolidation to restore the sustainability of its public finances.



&#8220;Durable expenditure-based consolidation of at least 3 percent of GDP over the next three years is required to place debt on a sustained downward path, while protecting vulnerable groups,&#8221; the IMF said in a statement.



The Fund said South Africa&#8217;s new government should build on a pre-existing reform agenda while increasing its ambition and accelerating implementation.



&#8220;The new government should use the opportunity of a new mandate to implement bold reforms to address long-standing challenges and achieve the economy&#8217;s full potential,&#8221; it said.



South Africa&#8217;s African National Congress has formed a broad coalition with several parties including the market-friendly Democratic Alliance after losing its parliamentary majority for the first time in 30 years in a May election.



(Reporting by Bhargav Acharya; Editing by Alexander Winning)

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South African Markets – Factors to watch on Sept 5

African Markets – Factors to watch on Sept 5

UN chief warns Africa’s inadequate access to debt relief is recipe for social unrest

China offers Africa $51 bln in fresh funding, promises a million jobs

IMF says South Africa needs ambitious fiscal consolidation

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South African Markets – Factors to watch on Sept 6

World Bank, French Development Agency give Uganda aid of over $600 mln

Friday’s jobs report for August is going to be huge. Here’s what to expect

How Gen Z Is Buying Homes Younger Than Millennials And Boomers Did

South African president: China not pushing Africa into ‘debt trap’

Climate change costs Africa up to 5% of GDP, UN climate head says

India and Singapore agree to cooperate during Modi visit

True financial inclusion calls for smaller markets to receive equal attention to larger ones

South Africa’s current account deficit narrows again in second quarter

Zimbabwe turns to private firms to boost freight rail volumes

South African rand gains on improved risk sentiment, Q2 current account data ahead

S.Africa’s Harmony Gold boosts dividend after profit more than doubles

South African Markets – Factors to watch on Sept 5

African Markets – Factors to watch on Sept 5

UN chief warns Africa’s inadequate access to debt relief is recipe for social unrest

China offers Africa $51 bln in fresh funding, promises a million jobs

IMF says South Africa needs ambitious fiscal consolidation

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