How The U.S. Is Pumping More Oil Than Any Country In History

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="574" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/3SPNJHTH4ZKOBH7O5TPG5SMUHA-1-820x574.jpg" alt="" class="wp-image-526836" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/3SPNJHTH4ZKOBH7O5TPG5SMUHA-1-820x574.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/3SPNJHTH4ZKOBH7O5TPG5SMUHA-1-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/3SPNJHTH4ZKOBH7O5TPG5SMUHA-1-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/3SPNJHTH4ZKOBH7O5TPG5SMUHA-1-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/3SPNJHTH4ZKOBH7O5TPG5SMUHA-1-1536x1075.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/3SPNJHTH4ZKOBH7O5TPG5SMUHA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Shoppers walk towards a Woolworths store in Cape Town, South Africa, February 26, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;Headwinds including product availability and higher living costs have pushed back when Woolworths&#8217; fashion business will reach its profit margin target, the retailer&#8217;s CEO said on Wednesday.



Woolworths, which reported a fall in annual profit before tax of 34.6% to 3.5 billion rand, said in the year to June 30, sales and profit of its South African fashion, beauty and home business was hit by a weak macro-economic environment, poor product availability and competition from online rivals.



The South African upmarket fashion and food retailer had set an adjusted earnings before interest, tax, depreciation and amortisation (EBIT) margin target of more than 14% for the fashion, beauty and home business over the medium-term.



This was due to be achieved by its financial year 2026.



While the margin goal has not changed, the timing has.



&#8220;The various headwinds we&#8217;ve experienced this past year have impacted the timing of when we expect to reach our target,&#8221; Woolworths&#8217; CEO Roy Bagattini told investors.



&#8220;Unless we see a rapid rebound in macros, it&#8217;s unlikely we reach it this year or even next,&#8221; he said, adding he was &#8220;pretty confident&#8221; of hitting its targets by financial year 2027.



The fashion business was also hit by the late onset of winter, with turnover and concession sales down by 0.4% on a comparable basis, while adjusted operating profit decreased by 9.9% to 1.8 billion rand ($101 million).



This resulted in an adjusted EBIT margin of 12%, a drop of 1.2 percentage points.



Nevertheless, Bagattini said he was seeing continued improvements in product resonance in &#8220;must win&#8221; product categories, as part of the fashion unit&#8217;s turnaround plan.



Woolworths&#8217; EBIT margin target for its Country Road Group, which operates in Australia and New Zealand, was revised downward to over 10% from greater than 12% as it now absorbs a lot more costs since the sale of department chain David Jones, which it shared services infrastructure with, Bagattini said.



The group is investing in new format stores to drive growth, with a standalone beauty store and beauty manufacturing facility to drive research, development and innovation.



($1 = 17.9074 rand)



(Reporting by Nqobile Dludla; Editing by Tom Hogue, Varun H K and Alexander Smith)

Woolworths in Cape Town

Woolworths warns it may not hit fashion profit margin target on time

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="490" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2023-06-14T051458Z_1_LYNXMPEJ5D03W_RTROPTP_3_SPAR-GROUP-RESULTS.jpg" alt="" class="wp-image-526833" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2023-06-14T051458Z_1_LYNXMPEJ5D03W_RTROPTP_3_SPAR-GROUP-RESULTS.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2023-06-14T051458Z_1_LYNXMPEJ5D03W_RTROPTP_3_SPAR-GROUP-RESULTS-300x184.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2023-06-14T051458Z_1_LYNXMPEJ5D03W_RTROPTP_3_SPAR-GROUP-RESULTS-147x90.jpg 147w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2023-06-14T051458Z_1_LYNXMPEJ5D03W_RTROPTP_3_SPAR-GROUP-RESULTS-768x470.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">Customers walk beneath a company logo for the South African supermarket chain SPAR Group as they arrive at a supermarket in Johannesburg, South Africa, June 7, 2022. Picture taken June 7, 2022. REUTERS/Siphiwe Sibeko/File Photo </figcaption></figure>



JOHANNESBURG, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s second-biggest grocery group SPAR&nbsp;SPPJ.J&nbsp;has sold its loss-making business in Poland to local Polish retailer Specjal for 185 million rand ($10 million), it said on Wednesday.



SPAR will be required to recapitalise the business at an estimated cost of 2.7 billion rand, the majority of which will be achieved by it settling the business&#8217;s funding debt, it said.



Shares in the group were down 6.79% at 117 rand by 1220 GMT.



SPAR, which has been reviewing its European operations, said the deal provides certainty for investors and removes the loss-making business from its balance sheet.



&#8220;For SPAR Poland to become earnings generative and value accretive to the group, significant time and investment would be required,&#8221; it said.



SPAR&#8217;s Polish assets comprise approximately 200 retail stores, three distribution centres and one production facility.



&#8220;This also gives clarity to our dedicated employees in Poland, who now have the potential to expand the business under the ownership of Specjal, a company with the requisite resources, scale, and capacity to take these assets to the next level,&#8221; SPAR Group CEO Angelo Swartz said.



SPAR operates in 11 countries, but its core South African business accounts for about 60% of group sales.



($1 = 17.9059 rand)



(Reporting by Sfundo Parakozov; Editing by Jan Harvey)

2023-06-14T051458Z_1_LYNXMPEJ5D03W_RTROPTP_3_SPAR-GROUP-RESULTS

South Africa’s SPAR sells Polish business to Specjal

Lebanon’s former Central Bank Governor Riad Salameh arrested over alleged financial crimes

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-820x547.jpg" alt="" class="wp-image-526802" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/32L3MWAHXROGFE6KGT4XODIWQ4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Drone view of Durban harbour, one of South Africa&#8217;s busiest ports in Durban, South Africa January 31, 2024. REUTERS/Shiraaz Mohamed/File Photo</figcaption></figure>



Sept 4 (Reuters)&nbsp;&#8211;&nbsp;South African business confidence rose in the third quarter, helped by improving optimism about the business climate after the formation of a coalition government and stable electricity supply, a survey showed on Wednesday.



The business confidence index rose to 38 points in the third quarter from 35 points in the prior quarter, according to the survey by the Rand Merchant Bank (RMB) and compiled by the Bureau for Economic Research.



&#8220;Fortunately, the widely anticipated interest rate cut in South Africa later this month, on the back of lower consumer inflation and a boost from the introduction of the two-pot retirement system should spur domestic demand through the remainder of the year,&#8221; Isaah Mhlanga, chief economist at RMB said in a statement.



The South African Reserve Bank is expected to start cutting interest rates from this month for the first time in four years.



The African National Congress lost its parliamentary majority for the first time in 30 years in May, and later formed a broad coalition with several parties including the market-friendly Democratic Alliance.



Additionally, state-owned power utility Eskom managed to keep the lights on for over five months without scheduled blackouts in the country where power cuts have hampered economic growth for over a decade.



However, businesses activity was still constrained especially from weak demand, but the survey indicated conditions are expected to improve in the next quarter.



Retail confidence improved to 45 points from 39 in the previous quarter helped by improvement in durable and semi-durable traders&#8217; sales volumes.



Manufacturing sector confidence remained stable 28 points as a drop in production due to declining exports and domestic demand was offset by optimism at new vehicle dealers surging to a one-year high.



Wholesale trade was the most optimistic sector surveyed, with over half of respondents satisfied with prevailing business conditions.



(Reporting by Radhika Anilkumar in Bengaluru; Editing by Varun H K)

FILE PHOTO: Durban harbour, one of South Africa’s busiest ports

South African business confidence gets boost from coalition government, survey shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/WH675YVHBZPIZNYJUJB4CMI73E-1-820x551.jpg" alt="" class="wp-image-526756" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/WH675YVHBZPIZNYJUJB4CMI73E-1-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/WH675YVHBZPIZNYJUJB4CMI73E-1-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/WH675YVHBZPIZNYJUJB4CMI73E-1-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/WH675YVHBZPIZNYJUJB4CMI73E-1-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/WH675YVHBZPIZNYJUJB4CMI73E-1-1536x1032.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/WH675YVHBZPIZNYJUJB4CMI73E-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows a toll station on the Expressway undertaken by the China Road and Bridge Corporation (CRBC) on a public-private partnership (PPP) basis, in Nairobi, Kenya May 8, 2022. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;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.



The Stanbic Bank Kenya Purchasing Managers&#8217; Index rose to 50.6 in August from 43.1 a month earlier. Readings below 50.0 signal a contraction in activity, while those above 50.0 indicate expansion.



&#8220;The Stanbic Bank Kenya PMI indicated a mild recovery in business conditions during August as the impact of protests faded, allowing firms to broadly resume normal operations,&#8221; Stanbic Bank Kenya said in comments accompanying the survey.



The July figure was a drop from 47.2 in June and reflected the effects of protests against the government during both months which disrupted some business activity.



In June, President William Ruto discarded the government&#8217;s finance bill for the year, which contained tax hikes worth 346 billion shillings ($2.69 billion), following deadly street protests.



&#8220;Output increased across three of the five broad sectors covered by the survey, with renewed growth in services, wholesale &amp; retail and construction,&#8221; Stanbic Bank Kenya said.



&#8220;By contrast, there were declines in activity across manufacturing and agriculture.&#8221;



The survey painted a gloomy outlook, with most of those polled expressing pessimism over economic prospects for the next 12 months, and only 5% of companies saying they expected growth.



&#8220;Business expectations worsened in August, implying firms as less hopeful about output over the next 12 months,&#8221; Christopher Legilisho, an economist at Stanbic Bank, said.



(Reporting by George Obulutsa; Editing by Christina Fincher)

FILE PHOTO: Shadow of Kenya’s borrowing binge to hang over next president

Kenya private sector activity picks up in August, PMI shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="521" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-820x521.jpg" alt="" class="wp-image-516586" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-820x521.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-768x488.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-1536x976.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller handles U.S. dollar banknotes and Kenya shilling banknotes inside the cashier&#8217;s booth at a forex exchange bureau in downtown Nairobi, Kenya, February 16, 2024. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Sept 4 (Reuters) &#8211; Kenya&#8217;s shilling firmed slightly against the dollar on Wednesday, LSEG data showed.



At 0720 GMT, the shilling traded at 128.25/129.25 to the U.S. currency, compared with Tuesday&#8217;s closing rate of 128.50/129.50.



Traders had said earlier this week that the shilling was expected to gain ground, helped by dollar inflows from the agriculture and tourism sectors.



(Reporting by George Obulutsa; Editing by Alexander Winning)

RLVCCF47LVIWPJR4O2PPITYMVI

Kenyan shilling gains ground against the dollar – LSEG data

<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 4 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was weaker in early trade on Wednesday, as markets awaited U.S. jobs data for clues on the interest rate path in the world&#8217;s biggest economy.



At 0626 GMT, the rand traded at 18.0025 against the dollar, about 0.17% weaker than its previous close.



&#8220;The USD-ZAR now looks to be targeting the 18.0000 handle once more. Whether it sustains a break above that level will depend on the market reaction to the U.S. data scheduled for release in the upcoming session,&#8221; ETM Analytics said in a research note.



U.S. job openings data is expected on Wednesday and could hint at the Federal Reserve&#8217;s interest rate path for this year.



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



Local investors will look to the S&amp;P Global South Africa Purchasing Managers&#8217; Index for August on Wednesday for hints on the health of Africa&#8217;s most industrialised economy.



Data on Tuesday showed South Africa&#8217;s second-quarter economic growth was slightly weaker than expected.



South Africa&#8217;s benchmark 2030 government bond was slightly stronger in early deals, as the yield slipped 1.5 basis points to 9.2%.



(Reporting by Tannur Anders; Editing by Andrew Heavens)

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

South African rand softens ahead of US jobs data

<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-1076949610-612x612-1-2.jpg" alt="" class="wp-image-524623" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, company announcement, and equity and currency market moves may affect South African markets on Wednesday.



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



S&amp;P Global Whole Economy PMI for August



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



South African upmarket fashion and food retailer Woolworths reported a 16.8% decline in full-year headline earnings on weak sales, as higher living costs continue to weigh on discretionary spend.



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



The South African rand weakened on Tuesday after data showed the country&#8217;s second-quarter economic growth was slightly weaker than expected.



On the stock market, the Top-40 index closed 1.6% lower.



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



Asian shares and global stock futures tumbled on Wednesday, led by a heavy decline in technology names and as worries about the global growth outlook drove investors out of risky assets, while oil prices hit multi-month lows. 



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



U.S. stocks slumped on Tuesday, at the start of one of the market&#8217;s historically worst months, ahead of data likely to influence how much the Federal Reserve will lower interest rates. 



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



Gold prices held steady on Wednesday as investors braced for a monthly U.S. payrolls report that could influence how swiftly and deeply the Federal Reserve cuts interest rates this year.



&#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; ‘Worst is probably behind us’ after modest lift in GDP



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



&#8211; MPs stunned as Post Office warns of liquidation within a month without R4bn bailout



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Sept 4

<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 4 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Wednesday.



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



Asian shares and global stock futures tumbled on Wednesday, led by a heavy decline in technology names and as worries about the global growth outlook drove investors out of risky assets, while oil prices hit multi-month lows.



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



Oil prices fell on Wednesday, extending a plunge of more than 4% the previous day, on expectations that a political dispute halting Libyan exports could be resolved and concerns over lower global demand growth.



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



The South African rand weakened on Tuesday after data showed the country&#8217;s second-quarter economic growth was slightly weaker than expected.



<h2 class="wp-block-heading" id="h-nigeria-china-investments">NIGERIA CHINA INVESTMENTS</h2>



China vowed to encourage its more &#8220;powerful&#8221; companies to invest in Nigeria, which in turn said it was open to Chinese companies building factories and developing its energy and mineral resources, after the two nations&#8217; leaders met in Beijing.



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



Kenya&#8217;s shilling was unchanged on Tuesday, and traders said it was expected to strengthen, helped by tea export dollar inflows.



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



Uganda&#8217;s main opposition leader Bobi Wine, who has emerged as the most formidable opponent of veteran President Yoweri Museveni, was shot in the leg by security agents in a northern suburb of the capital Kampala on Tuesday, his party said.



<h2 class="wp-block-heading" id="h-ethiopia-airline">ETHIOPIA AIRLINE</h2>



Ethiopian Airlines said on Tuesday it had suspended flights to neighbouring Eritrea because its bank account there was frozen.



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



China needs to step up its financing for Angola if the African nation is to absorb more Chinese-made goods from solar panels to electric cars, Angola&#8217;s finance minister said on Tuesday, as the former OPEC member considers vying bids from Beijing and Europe.



(Compiled by Nairobi Newsroom)

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Sept 4

<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/ZVSRSPYVAZJG3FTZT47LLKO4HQ-820x550.jpg" alt="" class="wp-image-526731" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/ZVSRSPYVAZJG3FTZT47LLKO4HQ-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/ZVSRSPYVAZJG3FTZT47LLKO4HQ-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/ZVSRSPYVAZJG3FTZT47LLKO4HQ-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/ZVSRSPYVAZJG3FTZT47LLKO4HQ-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/ZVSRSPYVAZJG3FTZT47LLKO4HQ-1536x1030.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/ZVSRSPYVAZJG3FTZT47LLKO4HQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China&#8217;s President Xi Jinping attends Shanghai Cooperation Organization (SCO) summit in Astana, Kazakhstan July 4, 2024. REUTERS/Turar Kazangapov/File Photo</figcaption></figure>



BEIJING, Sept 4 (Reuters) &#8211; China&#8217;s President Xi Jinping will open the ninth Forum on China-Africa Cooperation Summit on Thursday, where he is expected to urge African leaders gathered in Beijing to absorb more Chinese goods in exchange for pledges of loans and investment.



The three-yearly forum officially kicks off today with a welcome dinner for the 50 African nations in attendance and will close on Friday, after negotiations over cooperation documents setting the course of China-Africa relations up until 2027.



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



<h2 class="wp-block-heading" id="h-what-is-china-s-pitch">WHAT IS CHINA&#8217;S PITCH?</h2>



The world&#8217;s biggest bilateral lender wants to slim down its investment portfolio and re-align its relations with developing economies around Xi&#8217;s new mantra of &#8220;small and beautiful projects,&#8221; instead of big-ticket infrastructure.



Infrastructure appeared only once in Xi&#8217;s address to the last summit in Dakar in 2021, where he pledged to support 10 projects to improve the interconnectivity of African states.



On Thursday, analysts anticipate the Chinese leader to talk up the competitiveness of its green technologies, which the U.S. and Europe maintain it has overcapacity in, and Beijing needs to find buyers for, as well as technology transfer schemes and more people-to-people exchanges.



China could also pledge to increase the amount availabe to African central banks and businesses through credit lines, after committing $10 billion dollars at the last summit, in addition to support in developing digital finance and e-payment systems.



<h2 class="wp-block-heading" id="h-what-do-the-african-delegates-want">WHAT DO THE AFRICAN DELEGATES WANT?</h2>



African leaders will be looking for quicker financing solutions to a growing debt crisis across the continent in the Beijing Action Plan of the Forum on China-Africa Cooperation for 2025-2027, as well as fresh job-creating investment pledges and assurances projects proposed in Dakar will be completed.



South Africa&#8217;s president on Monday told Xi he wanted to narrow his country&#8217;s trade deficit with China, an aspiration almost all African states share, which leaders will be hoping Beijing responds to with better terms for their agricultural and natural resources exports.



Delegates will also be looking for assurance that a pledge from the 2021 summit that China would buy $300 billion worth of African goods will be met.



Analysts say Beijing&#8217;s phytosanitary market access barriers are too strict, preventing African food exporters from selling into the 1.4 billion strong consumer market.



Over the course of the week, African leaders have also been meeting Chinese firms to encourage them to set up manufacturing hubs in their countries, to help move their industrial sectors up the value chain.



<h2 class="wp-block-heading" id="h-what-happens-in-beijing">WHAT HAPPENS IN BEIJING?</h2>



On Tuesday, China&#8217;s foreign and commerce ministers met with delegates at Beijing&#8217;s Diaoyutai State Guesthouse to begin discussions over two documents: the action plan for 2024-2027 and a report on the implementations of the last summit in Dakar.



The two documents will be finalised and signed off by all delegates by the end of the summit.



African and Chinese negotiating teams have been meeting at least twice a year since the last forum, but the in-person meeting presents presidents with a chance to personally involve themselves in the negotiations.



A procession of presidents has passed through Beijing&#8217;s Great Hall of the People in the days leading up to the summit, with Xi having already met more than 20 heads of state, according to Chinese state media.



This year&#8217;s forum is the first in-person summit since COVID, with the Dakar meeting taking place largely online, and Chinese and African leaders alike are using the gathering to hold various bilateral meetings.



(Reporting by Joe Cash; Editing by Michael Perry)

Shanghai Cooperation Organization summit held in Kazakh capital Astana

What to expect from the Forum on China-Africa Cooperation Summit

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="505" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-820x505.jpg" alt="" class="wp-image-526728" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-820x505.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-768x473.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-1536x945.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/64EQ4QY5FRM5RKGDLFYQLITITE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The Hillbrow Tower, an iconic tower used to identify Johannesburg&#8217;s skyline, is seen as the sun sets, in Johannesburg, South Africa, October 18, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;South African private sector activity rose in August as firms received higher volumes of new orders for the first time since April 2023, a survey showed on Wednesday.



The S&amp;P Global South Africa Purchasing Managers&#8217; Index rose to 50.5 in August from 49.3 in July, the first time it has been above the 50 point mark &#8211; which separates growth from contraction &#8211; in three months.



&#8220;South African businesses saw demand growth emerge in August, as customers increased their spending on the back of falling CPI inflation figures and a general optimism that economic conditions are stabilising,&#8221; said David Owen, senior economist at S&amp;P Global Market Intelligence.



South Africa&#8217;s inflation fell to a more than three-year low of 4.6% year on year in July from 5.1% in June, offering some relief to consumers and cementing analysts&#8217; expectations for an interest rate cut this month.



&#8220;The rise in new orders was the first recorded in over a year, offering hope that the recent malaise in the private sector is starting to fade,&#8221; Owen added.



(Reporting by Tannur Anders; Editing by Christina Fincher)

View of Johannesburg’s skyline

South Africa business activity rises in August, PMI shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1381" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-scaled.jpg" alt="" class="wp-image-526710" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-820x553.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/H6GPW5QTMZLRVLBJ6PZD2Y4Y2M-1536x1036.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: China&#8217;s President Xi Jinping attends Shanghai Cooperation Organization (SCO) summit in Astana, Kazakhstan July 4, 2024. REUTERS/Turar Kazangapov/File Photo</figcaption></figure>



BEIJING, Sept 4 (Reuters)&nbsp;&#8211;&nbsp;China, Tanzania and Zambia signed an initial agreement to rehabilitate a decades-old railway aimed at improving the rail-sea transportation in resource-rich East Africa, Chinese state media said on Wednesday.



President Xi Jinping witnessed the signing of the memorandum of understanding on refurbishing the 1,860 kms (1,156 mile) Tanzania-Zambia Railway Authority (TAZARA) railway with the Tanzanian and Zambian presidents, who were in Beijing attending the Forum on China-Africa Cooperation, according to&nbsp;the state-run Xinhua news agency.



The single-track TAZARA railway was built between 1970 and 1975 through an interest-free loan from China, offering a cargo transport route from Zambia&#8217;s copper and cobalt mines to the sea on Tanzania&#8217;s coast that bypasses South Africa and the former state of Rhodesia.



Commercial operations of the line, derided by some Western governments at the time as the &#8220;bamboo railway&#8221;, began in 1976. The multi-year project had involved the construction of two dozen tunnels and hundreds of bridges by tens of thousands of Chinese and African workers.



&#8220;China is willing to take this summit as an opportunity to make new progress in the revitalisation of the Tanzania-Zambia railway, cooperate to improve the rail-sea intermodal transport network in East Africa, and build Tanzania into a demonstration zone for deepening high-quality China-Africa Belt and Road cooperation,&#8221; said Xi, according to state media.



Earlier this year, the World Bank approved $270 million in financing to help improve connectivity between neighbours Tanzania and Zambia and boost regional trade.



In February, China proposed to spend $1 billion to rehabilitate the rail line through a public-private partnership model.



(Reporting by Bernard Orr and Ryan Woo; Editing by Kim Coghill and Michael Perry)

China to ‘revitalise’ ageing railway linking Zambia, Tanzania

Why It’s So Hard To Build Nuclear Power Plants In The U.S.

<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-849638596-820x547.jpg" alt="" class="wp-image-526465" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-849638596-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-849638596-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-849638596-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-849638596-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-849638596-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GettyImages-849638596-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NEW YORK, NY &#8211; SEPTEMBER 19: H.E. Olusegun Obasanjo, former President of Federal Republic of Nigeria speaks at The 2017 Concordia Annual Summit at Grand Hyatt New York on September 19, 2017 in New York City. (Photo by Riccardo Savi/Getty Images for Concordia Summit)</figcaption></figure>



I believe in the unlimited potential of Africa. I believe that Africa can have a new story.



As a former President and a leader, I worked hard to ensure that this belief was embedded in the institutions that represent us at a global level, like the African Union and NEPAD. I am proud that they capture that belief in their visions and strategic plans.



Africa&#8217;s natural wealth has long been coveted by global markets. Our oil, gas, minerals, and precious metals fuel industries worldwide, and as demand surges, our strategic importance only grows. We possess the resources to lead the global renewable energy revolution and hold the key to the critical minerals essential for the energy transition. We have the natural assets to lead the world in renewable energy production and the deposits of the critical minerals that enable the energy transition lie beneath our earth.



Yet, this abundance stands in sharp contrast to our people&#8217;s plight. Despite our vast natural wealth, we are home to the world&#8217;s poorest populations &#8211; a paradox that demands our urgent attention and action.



However, our greatest asset lies not beneath the earth, but in our people. Africa&#8217;s human capital, particularly our youth, represents an unparalleled opportunity. By 2050, our population is projected to reach 2.5 billion &#8211; over 25% of the global total. More than half of these Africans will be under 25 years old, presenting a demographic dividend in a world grappling with ageing populations.



Our ability to leverage the power of that democratic dividend is the challenge that will define the future of our continent. We will only realise the full value of our natural wealth if we nurture our population by empowering them with the skills that we need to retain value and grow our economies domestically. But we equally face a catastrophe if we fail to take ownership of that opportunity. A 2.5 billion population that is facing limited opportunities, disempowered, and desperate presents a significant challenge to peace and security. Even with the impact on socio-political and economic prosperity, which affects the continent and also the global development landscape.



The stark reality that 9 out of 10 of our children cannot read with comprehension or perform basic mathematics by age ten is not just alarming—it&#8217;s a global emergency. This educational deficit, if left unaddressed, threatens to perpetuate a cycle of underdevelopment and lost potential. As leaders and parents, we bear no greater responsibility than to confront this challenge head-on. We must candidly acknowledge that we are falling short in this crucial task. It&#8217;s imperative that we, as a continent, collectively recognize this failure and take immediate, decisive action to rectify it. The future of Africa, and the world depends on our ability to equip our young people with these foundational skills.



This is not just an education problem. If we do not address it, we will not achieve our goals for healthcare, food security, climate change, inclusive economic green growth, trade, gender equality, economic empowerment, and governance. They are all interconnected with our ability to develop and build our human capital. Basic literacy and numeracy are the foundations on which the delivery of every single development objective outlined in Agenda 2063 will be achieved.



The African Union knows and understands the importance of education. That is why 2024 has been declared the African Union Year of Education. At a country level, there is encouraging work being done by the Ministries of Education to deploy innovative and scalable African solutions to this problem.



Some of these solutions are as simple as teaching a child at the appropriate level while consistently assessing and instructing them at their current levels. It works, as simple as it may sound. Schools that have made investments in structured pedagogy have also demonstrated remarkable success.



But this is not enough. My friends and fellow leaders have not yet seemed to fully grasp the urgency and severity of the situation. There is an urgent need to accelerate action and deliver it at scale. The consequences are clear if we do not, as is the opportunity if we confront this head-on and use it to catalyse investment in the education that our citizens need.



We are at an inflection point. The children being born today will be the five to ten-year-olds that reap the benefits of our work if we can deliver change, and they will become the 25-year-olds powering our growth and development by 2050. We owe it to them to give them the tools they need to deliver our dreams.



I call upon my fellow heads of state, former and current, to collectively commit to acknowledge our shared responsibility in ensuring that the young people of our beloved continent have the capacity to achieve their full potential, in line with the African Union’s Agenda 2063 goals and vision for the Africa we want. This goal is not merely aspirational; it is the bedrock upon which future academic success and societal progress will be built. This is not a decision for the future, but one that we need to act upon with the utmost urgency and pragmatism. Through meaningful collaboration, implementation of robust continental accountability mechanisms and measurement, and peer review structures, we can scale up innovative work happening at local and country levels across the continent and really move the needle forward on the economic security of our continent.



By focusing our efforts and resources on ensuring every child is equipped with basic literacy, numeracy, socioemotional, cognitive thinking skills, and more, we lay the foundation for a bright future. Imagine an Africa where every child, regardless of their background, has the tools to think critically, innovate, and contribute meaningfully to society. This focus on foundational learning will have a ripple effect across all sectors of the development framework of Agenda 2063. We will see increased economic productivity, enhanced technological innovation and adoption, improved health sectors, and stronger democratic participation. By 2063, Africa could stand as a beacon of human capital development, with a



highly skilled workforce driving sustainable economic growth, groundbreaking scientific advancements, and cultural renaissance.



Let us seize this moment. Our vision is within reach. Let us first acknowledge that we are collectively responsible for Africa’s future. With the right investment, action, and sustained focus, we can strengthen our chances of reaching our shared vision for the Africa we want. It is imperative that together, we strengthen the future of our beloved continent by empowering the brilliant minds of tomorrow.

The 2017 Concordia Annual Summit – Day 2

An Equipped Foundation for African Children: The Key to Unlocking Africa’s Sustainable Future

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="559" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/74HKXN4YGJNTXLGUEOUE6H5HXI-3-820x559.jpg" alt="" class="wp-image-526446" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/74HKXN4YGJNTXLGUEOUE6H5HXI-3-820x559.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/74HKXN4YGJNTXLGUEOUE6H5HXI-3-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/74HKXN4YGJNTXLGUEOUE6H5HXI-3-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/74HKXN4YGJNTXLGUEOUE6H5HXI-3-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/74HKXN4YGJNTXLGUEOUE6H5HXI-3-1536x1047.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/74HKXN4YGJNTXLGUEOUE6H5HXI-3-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People work at &#8221;The Faktory&#8221;, a fashion design and clothing manufacturing company in Johannesburg, South Africa, March 4, 2021. REUTERS/Siphiwe Sibeko</figcaption></figure>



PRETORIA, Sept 3 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s economic growth picked up in the second quarter, supported by higher consumer spending and power availability, but output declines in agriculture, mining and transport meant growth was slightly weaker than expected.



Gross domestic product (GDP) expanded 0.4% in quarter-on-quarter seasonally-adjusted terms in April to June, below the 0.5% growth forecast by economists polled by Reuters but above the first quarter&#8217;s flat output.



South Africa&#8217;s top statistics official said it was too early to say whether the coalition government that emerged after May&#8217;s election had contributed to the improved second-quarter performance, since President Cyril Ramaphosa was only sworn in for a second term in mid-June.



&#8220;Even in the next quarter, it would be too early to tell about the effects of the government of national unity,&#8221; Statistician-General Risenga Maluleke told reporters.



Seven of the 10 sectors tracked by Statistics South Africa registered growth in the latest three-month period, as the economy benefited from an unbroken stretch without power cuts for the first time in years.



But economists said lingering bottlenecks at ports and on the freight rail network and weak global demand remained a drag.



&#8220;It&#8217;s a big step forward to not have power disruptions, but (we&#8217;re) not there yet in terms of all the other constraints,&#8221; said Lisette IJssel de Schepper, chief economist at the Bureau for Economic Research (BER).



After the marked improvement in power utility Eskom&#8217;s performance this year, inefficiencies at state logistics group Transnet are among the biggest unresolved issues.



<h2 class="wp-block-heading" id="h-faster-growth-ahead">FASTER GROWTH AHEAD?</h2>



South African factory activity also slumped in August, indicating that business conditions remain highly volatile in key sectors.



IJssel de Schepper said growth could start to pick up from the fourth quarter.



One reason is a government pension policy reform that came into effect on Sept. 1 and will allow fund members to withdraw some of their savings before retirement age.



The central bank estimates withdrawals could be between 40 billion rand and 100 billion rand ($2.2 billion and $5.6 billion) by the end of the year, boosting household consumption spending and GDP growth.



Another factor is that the central bank is expected to start cutting interest rates from this month for the first time in four years.



The BER forecasts 2.2% growth in 2025, up from 1% this year, but it says for that to be sustained there needs to be progress with reforms to enhance the country&#8217;s growth potential.



($1 = 17.9700 rand)



(Reporting by Kopano Gumbi and Tannur Anders: Editing by Alexander Winning)

People work at ”The Faktory”, in Johannesburg

South African economy gains momentum but not as much as forecast

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How The U.S. Is Pumping More Oil Than Any Country In History

Woolworths warns it may not hit fashion profit margin target on time

South Africa’s SPAR sells Polish business to Specjal

Lebanon’s former Central Bank Governor Riad Salameh arrested over alleged financial crimes

South African business confidence gets boost from coalition government, survey shows

Kenya private sector activity picks up in August, PMI shows

Kenyan shilling gains ground against the dollar – LSEG data

South African rand softens ahead of US jobs data

South African Markets – Factors to watch on Sept 4

African Markets – Factors to watch on Sept 4

What to expect from the Forum on China-Africa Cooperation Summit

South Africa business activity rises in August, PMI shows

China to ‘revitalise’ ageing railway linking Zambia, Tanzania

Why It’s So Hard To Build Nuclear Power Plants In The U.S.

An Equipped Foundation for African Children: The Key to Unlocking Africa’s Sustainable Future

South African economy gains momentum but not as much as forecast

Why Serbia’s White Gold is so controversial

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