<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="350" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg" alt="" class="wp-image-400879" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1-300x172.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Stock market report. 3d illustration</figcaption></figure>



Aug 6 (Reuters)&nbsp;&#8211;&nbsp;Emerging market assets recouped some losses on Tuesday after a torrent of selling in the prior session, though a stronger dollar and continued concerns over global economic growth kept gains in check.



MSCI&#8217;s index of emerging market stocks rose 1.2% after its worst day in over two years on Monday, when a combination of concerns about a U.S. economic recession, disappointing tech earnings and geopolitical worries saw investors flee risk assets.



Emerging market stocks in Asia outside Japan rose 1%, helped by a sharp recovery in the Nikkei.



Still, some caution remained, with investors pricing in an 80% chance of a 50 basis point interest rate cut from the Federal Reserve in September, down from 86% on Monday. Policy easing in the U.S. typically benefits emerging market stocks and currencies.



&#8220;Large stock market movements often mean that investors are looking for answers to one or more questions, so even if the day looks like the situation is improving, it is best to assume that it will continue to be nervous for some time to come,&#8221; Marcus Widén, economist at SEB said.



The Japanese yen was a key beneficiary of risk aversion on Monday, which saw an unwinding of carry trades that hit many high-yielding emerging market currencies. The yen slipped on Tuesday, though a rebound in the U.S. dollar continued to weigh on EM currencies.



&#8220;Higher interest rates in Japan and expectations of greater and faster expectations of interest rate cuts in the U.S. changed the conditions for carry trades,&#8221; Widen added.



Turkey&#8217;s lira touched a fresh record low of 33.47 to the dollar, while the South African rand slipped 0.2%.



Malaysia&#8217;s ringgit lost over 1% against the dollar after surging over 2% on Monday. The Mexican peso was also down on the day after the carry trade favourite fell to a two-year low.



Among equities, Turkey&#8217;s Bist 100 rose 1.4% and the Prague bourse rose after falling over 4% the session prior.



Saudia Arabia&#8217;s benchmark index gained 1.8%, with Saudi Aramco rising 2.2% after reporting a second-quarter net profit of 109.01 billion riyals.



Central European currencies weakened against the euro, with the Czech crown, Polish zloty and Hungarian forint slipping between 0.1% and 0.3%.



Meanwhile the International Monetary Fund said it was &#8220;fully committed to Bangladesh&#8221; after Prime Minister Sheikh Hasina resigned and fled the country following student-led protests.



Kenya&#8217;s shilling edged down 0.2% against the dollar ahead of a monetary policy announcement.



(Reporting by Lisa Pauline Mattackal in Bengaluru; Editing by Christina Fincher)

Stock market report. 3d illustration

EM stocks recover after bruising selloff, dollar recovery weighs on currencies

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1363" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VC-profile-Image-scaled.jpg" alt="" class="wp-image-515710" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VC-profile-Image-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VC-profile-Image-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VC-profile-Image-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VC-profile-Image-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VC-profile-Image-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VC-profile-Image-1536x1022.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /></figure>



UJ also the number 1 university in South Africa and on the African continent



The University of Johannesburg (UJ) has consolidated its position among the leading institutions of higher learning in the world, soaring to its highest-ever position in global rankings. UJ secured a remarkable #36 position in the <a href="https://www.timeshighereducation.com/world-university-rankings/university-johannesburg">Times Higher Education (THE) Impact Rankings</a> released in June this year. This is quite a feat for a university, considering that this year’s rankings included 1,963 institutions, an increase of 372 from the previous year.&nbsp;The University’s standing in these global rankings marks a significant rise of 10 from its previous position of #46 in the 2023 edition.



Consistently leading as the top university in Africa and South Africa, UJ has also maintained its prestigious #1 spot on the continent and in the country. This achievement is for its exceptional contribution to poverty alleviation, securing the top position in Sustainable Development Goal (SDG) 1: No Poverty. Impressively, UJ now ranks #3 globally in this SDG category, highlighting its firm commitment to research and support initiatives aimed at assisting impoverished students and local communities.



This notable achievement highlights UJ&#8217;s dedication to addressing some of the world’s most critical challenges, including environmental sustainability, social inclusion, economic growth, and collaborative partnerships.



UJ’s performance across individual SDGs is commendable, achieving top 100 rankings in six SDGs:



#3 for SDG 1: No Poverty



#6 for SDG 8: Decent Work and Economic Growth



#13 for SDG 5: Gender Equality



#46 for SDG 10: Reduced Inequalities



#53 for SDG 4: Quality Education



#93 for SDG 2: Zero Hunger



Additionally, UJ’s rankings for other SDGs are as follows:



101-200 for SDG 7: Affordable and Clean Energy



101-200 for SDG 12: Responsible Consumption and Production



201-300 for SDG 9: Industry, Innovation and Infrastructure



201-300 for SDG 17: Partnerships for the Goals



301-400 for SDG 6: Clean Water and Sanitation



301-400 for SDG 16: Peace, Justice and Strong Institutions



401-600 for SDG 11: Sustainable Cities and Communities



401-600 for SDG 3: Good Health and Well-being



401-600 for SDG 13: Climate Action



Apart from its impressive showing in THE Impact Ranking, UJ has also continues its strong performance in the QS World University Rankings, maintaining its position among the top 350 globally. UJ is also recognised as the most improved African institution over the past five years. Earlier, THE Young University Rankings named UJ as the leading university in South Africa and Africa among institutions under 50 years old.



This recognition of UJ in the various global rankings&nbsp;highlights the University’s rapid growth and outstanding potential in the global academic arena. Despite its relatively short history of 20 years of existence, UJ has demonstrated exceptional progress, challenging well-established institutions, some of which have more than a century of legacy, says Letlhokwa George Mpedi, UJ Vice-Chancellor and Principal.



“The University remains steadfast in its commitment to addressing societal challenges through research and knowledge production. “Our progress is not just about numbers and figures; it’s all about the positive and lasting impact we have on our students and the broader society.”

VC profile Image

UJ soars to top its highest-ever position in the global university rankings

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-820x429.jpg" alt="" class="wp-image-506011" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller serves a client with Kenya shilling notes at the cashier&#8217;s booth of a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Aug 6 (Reuters) &#8211; Kenya&#8217;s shilling eased slightly on Tuesday, and traders said it was expected to hold steady during the session, with dollar demand from various sectors being matched by supply.



At 0730 GMT, commercial banks quoted the shilling at 129.50/130.50 per dollar, compared with Monday&#8217;s closing rate of 129.25/130.25.



(Reporting by George Obulutsa; Editing by Duncan Miriri)

Kenyan shilling eases slightly; expected to hold steady

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1394" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6RYF2UQ3FZLS7NXFVWZYO5NC3Q-scaled.jpg" alt="" class="wp-image-515686" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6RYF2UQ3FZLS7NXFVWZYO5NC3Q-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6RYF2UQ3FZLS7NXFVWZYO5NC3Q-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6RYF2UQ3FZLS7NXFVWZYO5NC3Q-820x558.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6RYF2UQ3FZLS7NXFVWZYO5NC3Q-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6RYF2UQ3FZLS7NXFVWZYO5NC3Q-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6RYF2UQ3FZLS7NXFVWZYO5NC3Q-1536x1046.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Customers perform transactions on Nedbank automated teller machine (ATM) at the Trade Route Mall, in Lenasia outside Johannesburg, South Africa, February 8, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Aug 6 (Reuters) &#8211; South Africa&#8217;s Nedbank Group reported an 8% rise in half-year profit on Tuesday, supported by lower impairment charges and solid growth in non-interest revenue (NIR).



Nedbank upwardly revised its full-year forecast for NIR and new Chief Executive Jason Quinn told Reuters the bank should benefit as South Africa&#8217;s new national unity government has spurred cautious optimism in financial markets and could see companies spending meaningfully again.



&#8220;The national agenda on infrastructure is clear and we are an infrastructure player,&#8221; Quinn, who became CEO in May, said in an interview. &#8220;Companies are geared to take on some projects and taking on some debt.&#8221;



Nedbank, South Africa&#8217;s fourth biggest bank by assets, said headline earnings rose to 7.9 billion rand ($427.2 million) in the six months ended June 30.



NIR increased by 7% to 14.4 billion rand, slightly ahead of the group&#8217;s full-year guidance of above mid-single-digit growth. This was thanks to good growth in commission and fees, a strong trading performance and higher equity investment income, the bank said.



Nedbank now expects NIR growth for 2024 to be in the upper-single digits, buoyed by ongoing corporate deals and the acquisition of fleet management business Eqstra.



CEO Quinn is betting on an improving South African economy as inflationary pressures ease and the central bank is expected to start cutting interest rates in September for the first time since July 2020.



In the first half of the year, Nedbank&#8217;s net interest income (NII) &#8211; the amount banks earn from loans minus what they pay on deposits &#8211; grew marginally by 2% to 20.8 billion rand, below initial management expectations of above mid-single digit growth.



For 2024, NII growth is now guided to be below mid-single digits.



Nedbank&#8217;s loan growth increased by 4% to 913 billion rand, with stronger growth expected in the second half &#8220;as lower interest rates and inflation start benefiting retail credit growth and as wholesale clients start drawing down on renewable energy deals,&#8221; the bank said.



&#8220;Our best case says credit extension could grow by 6%,&#8221; Quinn told Reuters.



The group&#8217;s credit impairment charge decreased by 12% to 4.7 billion rand. Its credit loss ratio &#8211; a measure of bad loans as a percentage of total loans &#8211; of 104 basis points remained elevated as household finances remained under pressure.



But it improved from the 121 basis points reported in the same first half of 2023.



($1 = 18.4912 rand)



(Reporting by Nqobile Dludla; Editing by Jacqueline Wong, Janane Venkatraman and Susan Fenton)

Customers perform transactions on Nedbank automated teller machine

Nedbank raises non-interest revenue growth guidance after sold first half

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-scaled.jpg" alt="" class="wp-image-515689" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: The Mobius II first generation SUV by Kenyan car maker Mobius Motors is seen in the company&#8217;s show room in Nairobi, Kenya March 6, 2019. Picture taken March 6, 2019. REUTERS/Baz Ratner/File Photo</figcaption></figure>



NAIROBI, Aug 6 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s Mobius Motors, which started making rugged, low-priced SUVs designed for Africa&#8217;s roads a decade ago, has decided to stop operating due to financial challenges, a company statement and a shareholder source said on Tuesday.



Mobius, founded by a London-born investor who experienced the continent&#8217;s bumpy roads while working for a forestry company in Kenya, found tax hikes in the East African country meant its business model was no longer sustainable, the source at one of the company&#8217;s shareholders told Reuters.



&#8220;The business could not sustain itself. There were some challenges,&#8221; said the source, asking not to be named.



The owners considered moving production to a different country, but that option was rejected due to the logistical challenges of moving the existing assembly line from Nairobi, the shareholder added.



Mobius initially produced a boxy, no-frills SUV designed for the modest budgets of African consumers, going for 1.3 million Kenyan shillings, equivalent to about $13,000 at the time and roughly half the price of an imported second-hand SUV.



It later launched updated editions with extra features.



Mobius, whose investors include Britain&#8217;s Playfair Capital, was part of a push by investors and governments on the continent to create jobs by launching home-grown vehicle manufacturers. They included Uganda&#8217;s Kiira Motors, Ghana&#8217;s Kantanka and Nigeria-based Innoson Motors.



At the same time, global automakers such as Japan&#8217;s Toyota Motor Corp and Germany&#8217;s Volkswagen AG also boosted their investments in markets including Kenya and Rwanda to tap into growing economies and rising consumer demand.



They all, however, faced the same challenges: stiff competition from second-hand imports from abroad.



Creditors will meet on Aug. 15 to vote on the voluntary liquidation, the company &#8211; which was not listed &#8211; said in the statement that appeared in newspapers.



(Reporting by Duncan Miriri; Editing by Helen Popper)

FILE PHOTO: The Mobius II first generation SUV by Kenyan car maker Mobius Motors is seen in the company’s show room in Nairobi

Kenya’s Mobius, maker of rugged cars for African roads, calls it a day

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-820x547.jpg" alt="" class="wp-image-505638" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A South African one rand coin sits on South African rand banknotes in this arranged photograph in Pretoria, South Africa, on Wednesday, Aug. 14, 2019. The rand ended a tumultuous week on a positive note, gaining against the dollar for a second day and heading for its first weekly advance in four as technical indicators suggested recent declines are overdone. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Aug 6 (Reuters)&nbsp;&#8211;&nbsp;The South African rand clawed back ground in early trade on Tuesday as risk sentiment improved, after tanking on Monday on fears of a possible recession in the United States.



At 0649 GMT, the rand traded at 18.45 against the dollar, about 0.4% firmer than its previous close.



Friday&#8217;s weak U.S. July payrolls report stoked recession worries and led to a plunge in global equities, with traders fleeing to safe havens.



&#8220;The rand opened below the R18.50 handle this morning after risk sentiment improved in the early morning hours,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



&#8220;We will still take our cues from global risk sentiment and could expect volatility to remain for the days to come,&#8221; Cilliers added.



U.S. central bank policymakers pushed back on Monday against the notion that the economy is close to recession, but indicated the Federal Reserve will need to cut rates to avoid such an outcome.



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



South Africa&#8217;s benchmark 2030 government bond was also firmer in early deals, with the yield down 3.5 basis points to 9.325%.



(Reporting by Tannur Anders; Editing by Christina Fincher)

South African Rand Rebound Snaps Streak of Weekly Losses

South African rand claws back losses as risk sentiment improves

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-400697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1-300x200.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Double exposure of coin stack with city background and world map, financial graph, world map and global network business concept idea, element by NASA.</figcaption></figure>



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



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



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



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



Nedbank Group recorded an 8% rise in half-year headline earnings supported by good non-interest revenue growth, a lower impairment charge and tight cost control.



AngloGold Ashanti will release first-half results.



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



South African stocks and the rand fell on Monday as global investor sentiment towards riskier assets soured on growing fears over a possible recession in the United States.



On the Johannesburg Stock Exchange, the Top-40 index was down about 2.3%, mirroring a sell-off on global stock markets.



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



Japanese stocks jumped at the open on Tuesday, underpinning a recovery across battered Asian share markets, after central bank officials said all the right things to soothe investor nerves.



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



U.S. stocks ended with steep losses on Monday, leaving the Nasdaq and S&amp;P 500 down at least 3% each as the market extended last week&#8217;s sell-off amid U.S. recession worries and as Apple shares fell sharply on news that a big investor had cut its stake.



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



Gold prices edged higher on Tuesday after comments from Federal Reserve officials reinforced expectations of bigger U.S. interest rate cuts later 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; Treasury eases tough-love approach to Transnet



&#8211; Wind power sector ‘deeply concerned’ after regulator rejects Eskom’s reservation request



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Aug 6

<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, Aug 6 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Tuesday.



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



*Kenya&#8217;s central bank is due to announce its latest benchmark lending rate decision.



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



Japanese stocks jumped at the open on Tuesday, underpinning a recovery across battered Asian share markets and even triggering circuit breakers in some, after central bank officials said all the right things to soothe investor nerves.



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



Oil prices rebounded by more than 1% on Tuesday, paring previous session&#8217;s losses, on supply concerns amid an escalating Middle East conflict, stronger U.S. services sector data and a cut in production at Libya&#8217;s Sharara oilfield.



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



South African stocks and the rand tanked on Monday as global investor sentiment soured towards riskier assets due to growing fears over a possible recession in the United States.



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



Protests in Nigeria over the soaring cost of living ebbed on Monday, with only a few hundred people turning out in major cities following a deadly crackdown by security forces since the demonstrations began last week.



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



Kenya&#8217;s shilling firmed slightly in early trade on Monday and it was expected to strengthen further, fuelled by dollar inflows from the tea sector, traders said



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



Kenya&#8217;s private sector activity dropped in July, undermined by the effects of public protests against the government which hurt confidence in the economy and disrupted some business activity, a survey showed on Monday.



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



Police arrested 14 Ugandan opposition officials and supporters on Monday as they marched through their capital towards the Kenyan embassy to protest against Nairobi&#8217;s decision to detain and deport a group of their colleagues, local media said.



<h2 class="wp-block-heading" id="h-ivory-coast-cocoa">IVORY COAST COCOA</h2>



Cocoa arrivals at ports in top grower Ivory Coast had reached 1.668 million metric tons by August 4 since the start of the season on Oct. 1, down 26.8% from the same period last season, exporters estimated on Monday.



<h2 class="wp-block-heading" id="h-democratic-republic-of-congo-mining">DEMOCRATIC REPUBLIC OF CONGO MINING</h2>



China&#8217;s CMOC and other miners have applied for copper from Democratic Republic of Congo (DRC) to be registered for delivery against London Metal Exchange (LME) contracts, four sources with knowledge of the matter said.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Aug 6

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107387062-17103533112022-03-12t000514z_565864485_rc2c0t9vvjxf_rtrmadp_0_ukraine-crisis-usa-gasoline-820x462.jpeg" alt="" class="wp-image-515647" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107387062-17103533112022-03-12t000514z_565864485_rc2c0t9vvjxf_rtrmadp_0_ukraine-crisis-usa-gasoline-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107387062-17103533112022-03-12t000514z_565864485_rc2c0t9vvjxf_rtrmadp_0_ukraine-crisis-usa-gasoline-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107387062-17103533112022-03-12t000514z_565864485_rc2c0t9vvjxf_rtrmadp_0_ukraine-crisis-usa-gasoline-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107387062-17103533112022-03-12t000514z_565864485_rc2c0t9vvjxf_rtrmadp_0_ukraine-crisis-usa-gasoline-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107387062-17103533112022-03-12t000514z_565864485_rc2c0t9vvjxf_rtrmadp_0_ukraine-crisis-usa-gasoline.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view of storage tanks and pipelines at the Shell Carson Distribution Complex, a distribution hub for petroleum products, in Carson, California, on March 11, 2022. Bing Guan | Reuters</figcaption></figure>



U.S. crude oil futures fell to a six-month low on Monday as equity markets sold off on fears the economy might be teetering on the brink of a recession.



West Texas Intermediate is now up roughly 2% for the year while Brent is now down marginally for 2024, after trading higher for months on geopolitical risk in the Middle East and forecasts that the oil market would tighten in the third quarter.



U.S. crude oil closed below $73 per barrel, the lowest settlement since Feb. 5.



“In times of crises all assets correlate,” Matt Smith, lead oil analyst for the Americas at Kpler, said of oil following equity markets lower. But geopolitical tensions in the Middle East and OPEC’s ongoing production cuts are providing a floor for crude prices, Smith said.



Here are Monday’s closing energy prices:



<ul class="wp-block-list">
<li>West Texas Intermediate&nbsp;September contract: $72.94 per barrel, down 58 cents, or 0.79%. Year to date, U.S. crude oil is up 1.8%.</li>



<li>Brent&nbsp;October contract: $76.30 per barrel, down 51 cents, or 0.66%. Year to date, the global benchmark has fallen about 1%.</li>



<li>RBOB Gasoline&nbsp;September contract:&nbsp;$2.33 per gallon, up more than 1 cent, or 0.69%. Year to date, gasoline is up 10.99%.</li>



<li>Natural Gas&nbsp;September contract: $1.94 per thousand cubic feet, down more than 2 cents, or 1.27%. Year to date, gas is down 22.75%.</li>
</ul>



The sell-off comes after U.S. job growth disappointed in July, with the unemployment rate rising to 4.3%, the highest level since October 2021. The U.S. manufacturing sector also contracted in July for the fourth consecutive month.



The weak economic data in the U.S. comes as lackluster demand in China had already been spooking traders.



“Already before we had the jobs report, already before the manufacturing data, we were concerned about weaker imports into China, weaker refinery utilization rates in China,” Helima Croft, head of global commodity strategy at RBC Capital Markets, said on CNBC’s “Squawk Box” on Monday.



<h2 class="wp-block-heading" id="h-opec-plans-face-challenges">OPEC plans face challenges</h2>



OPEC+ is also expected to start increasing production in October, though the group indicated last week that this decision “could be paused or reversed, depending on prevailing market conditions.” Croft said OPEC+ is now unlikely to start ramping up production.



“If the trend continues, I just can’t imagine OPEC would go forward with increasing output into this market. The question is, would they go the opposite way given the conditions we’re seeing,” Croft said, suggesting the oil producers could cut production again.



Bob Yawger, executive director of energy futures at Mizuho Securities, said OPEC+ seems interested in moving forward with the production increase based on last week’s statement, but they may not be able to afford to do so at this point. Rolling oil bank onto the market at current prices would “tank” the market, Yawger said.



<h2 class="wp-block-heading" id="h-geopolitical-risk"><a></a>Geopolitical risk</h2>



Geopolitical risk remains present with Israel preparing for an attack from Iran after the assassination of Hamas leader Ismail Haniyeh in Tehran last week.



“That exchange of fire in April between Iran and Israel was relatively contained, did not lead to any market disruptions,” Croft said. “But the question is now are we looking at something more coordinated with Hezbollah, Iran, Hamas.”



Bob McNally, president of Rapidan Energy, warned that tensions in the Middle East are “climbing the escalation ladder.” If Iran strikes Israel and kills civilians, the Netanyahu government will hit back much harder, he said.



“Israel is in a not in an eye for an eye mode,” McNally said. “They’re in three eyes for one eye mode.

107387062-17103533112022-03-12t000514z_565864485_rc2c0t9vvjxf_rtrmadp_0_ukraine-crisis-usa-gasoline

U.S. crude oil falls to six-month low as market sells off on recession fears

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1152" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w, 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-1-2-820x461.jpg 820w, 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" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><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, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;South African stocks and the rand tanked on Monday as global investor sentiment soured towards riskier assets due to growing fears over a possible recession in the United States.



At 1206 GMT, the rand traded at 18.5825 against the dollar, about 1.7% weaker than its previous close and near a two-month low. The rand had lost more than 2% against the greenback in earlier trade.



On Johannesburg Stock Exchange, the Top-40 index was down about 2.3%, mirroring a sell-off on global stock markets.



Markets have been hit by Friday&#8217;s weak U.S. July payrolls report, which showed the unemployment rate had risen to 4.3%, stoking concerns the world&#8217;s biggest economy may be heading for a recession.



&#8220;The ongoing equity market correction provides a glimpse of the kind of volatility that can be expected through the months ahead &#8230; (but) it will eventually trigger more aggressive rate cuts in the world&#8217;s top economies,&#8221; said Danny Greeff, co-head of Africa at ETM Analytics.



Traders are pricing in a near 100% chance that the Federal Reserve will cut interest rates by a full 50 basis points in September to rescue growth, compared with an 11.5% chance a week earlier, according to the CME FedWatch tool.



Rate cuts in the world&#8217;s biggest economies should lead to corrections in overvalued major currencies, Greeff added.



&#8220;The rand is thus still expected to strengthen through the coming quarters, but it will be far from smooth sailing,&#8221; he said.



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



South Africa&#8217;s benchmark 2030 government bond was also weaker, as the yield gained 9.5 basis points to 9.345%.



(Reporting by Tannur Anders;Editing by Bhargav Acharya and Helen Popper)

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

South African rand, stocks sink as US recession fears hit riskier assets

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-820x549.jpg" alt="" class="wp-image-515415" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-1536x1027.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A customer uses an ATM outside a branch of South Africa&#8217;s First National Bank (FNB) at a mall in Soweto, South Africa, December 13, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;South African banks report their half-year earnings from Tuesday, with the focus on whether credit impairments have peaked and on the interest rate outlook, with rates expected to fall in September for the first time since July 2020.



Monetary policy has remained tight in Africa&#8217;s most industrialised economy with the Central Bank holding rates at 8.25% since May 2023 after a hiking cycle from late 2021.



Economists polled by Reuters predict a 25-basis-point cut in September followed by another in November.



However, the lag between the first rate cut and improved performance, such as sustained loan growth, will likely mean a limited impact on the banks&#8217; 2024 earnings, Charles Russell, head of financial research at SBG Securities said in a note.



It will be &#8220;more material in 2025 and beyond, especially when combined with likely incremental politically-driven reform.&#8221;



Keamogetse Konopi, equity research analyst at Citi said we would need to see a slowdown in inflation and more than 75 basis points of rate cuts for banks to feel the impact and for consumer pressures to ease.



This &#8220;would lead to lower defaults and better affordability for households but this is likely to only result in a gradual pick up in banks&#8217; appetite for extending credit to households,&#8221; Konopi added.



<h2 class="wp-block-heading" id="h-retail-growth">RETAIL GROWTH</h2>



Radebe Sipamla, senior investment analyst at Mergence Investment Managers said credit growth will likely come from corporate lending with retail loan growth likely to remain tepid.



Most banks are expecting growth in net interest income, although some, like Nedbank are expecting to report slower growth of below mid-single digits.



Inflationary pressures, high interest rates and regular power blackouts are taking a toll on the banks&#8217; most sensitive retail and small business customers, leading to defaults.



Some like Standard Bank are grappling with sovereign defaults.



To weather the storm, banks have boosted their provisions for credit losses and have been conservative in lending out money.



Banks&#8217; credit losses have increased after a series of interest rate hikes, with the majority of banks&#8217; credit loss ratios &#8211; a measure of bad loans as a percentage of total loans &#8211; above the top of their target ranges.



Although impairments are higher than anticipated in certain portfolios for some banks including FirstRand, Absa Group and Standard Bank, overall credit performance for others is trending better into the second half.



In addition to also scrutinising the impact of currency weakness on banks&#8217; Africa operations, investors &#8220;will also get an idea of the quantum of the provision that FirstRand will be setting aside for the UK&#8217;s Financial Conduct Authority investigation into the country&#8217;s vehicle finance market,&#8221; Sipamla said.



(Reporting by Nqobile Dludla; Editing by Sharon Singleton)

A customer uses an ATM, in Soweto

South African banks’ earnings in spotlight ahead of first rate cuts

Why Monthly Home Payments Are Skyrocketing Right Now

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="511" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-820x511.jpg" alt="" class="wp-image-515376" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-820x511.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-300x187.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-768x479.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-1536x958.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Displaced Congolese people are reflected on a puddle, at the Muchacha primary school, where they live after recently fleeing from their Shasha village following clashes between M23 rebels and the Armed Forces of the Democratic Republic of the Congo (FARDC) in Sake, the Democratic Republic of Congo February 6, 2024. REUTERS/Arlette Bashizi/File Photo</figcaption></figure>



KAMPALA, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;Nearly 100 police officers from the Democratic Republic of Congo fled to neighbouring Uganda over the weekend as fighting between M23 rebels and the military in Congo&#8217;s east intensified, a Ugandan military spokesperson said on Monday.



The officers arrived via the Ishasha border crossing in Kanungu district in southwestern Uganda, Major Kiconco Tabaro, a regional spokesperson for the Uganda People&#8217;s Defence Forces, said.



The 98 officers arrived with 43 guns and ammunition and were subsequently disarmed.



&#8220;They were fleeing fighting by M23 and other militias and the Congo military, there&#8217;s a lot of violence there and then there&#8217;s also hunger,&#8221; Tabaro said.



Over the past four days at least 2,500 more Congolese refugees have arrived in Uganda fleeing the raging violence across the border, he said.



&#8220;The main push factor is the intensifying violence and insecurity,&#8221; Tabaro said, adding that pregnant women, breastfeeding mothers and young children were among the refugees.



The M23 has been waging a fresh insurgency in Congo&#8217;s militia-plagued east since 2022. A United Nations report seen by Reuters last month said the Ugandan army has provided support to the Tutsi-led rebel group, a charge Uganda denies.



The U.N. has long accused Uganda&#8217;s neighbour Rwanda of backing the M23, which has repeatedly seized large parts of mineral-rich eastern Congo, allegations Rwanda denied.



Efforts by Congo&#8217;s military to push back the rebels have intensified over the past year with the use of drones and aircraft, although the rebels have still expanded territory under their control.



In June, the M23 seized the town of Kanyabayonga, whose location on high ground makes it a coveted gateway to other parts of eastern Congo&#8217;s North Kivu province.



Fighting in North Kivu has driven more than 1.7 million people from their homes, taking the total number of Congolese displaced by multiple conflicts to a record 7.2 million, according to U.N. estimates.



(Reporting by Elias Biryabarema; Editing by George Obulutsa and Ros Russell)

Thousands more flee rebel advance in eastern Congo

Congolese police officers flee to Uganda as fighting intensifies

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1403" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-scaled.jpg" alt="" class="wp-image-489318" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-1536x1052.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Customers push trolleys as they shop at a Pick n Pay store at the Trade Route Mall, in Lenasia outside Johannesburg, South Africa, February 8, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Pick n Pay&nbsp;PIKJ.J&nbsp;has raised 4 billion rand ($217 million) through a rights offer that was 106% oversubscribed, it said on Monday as the country&#8217;s third biggest grocery group looks to reduce its debt.



Pick n Pay, which has 2,279 stores across South Africa and seven countries across Africa said in a statement that 98.7% of shareholders exercised their rights and the group received 4.3 billion rand worth in excess applications.



Only 1.3% of excess rights offer shares were allocated to make up the 100% total subscription.



As the rights offer was fully subscribed after taking into account the excess applications, the joint underwriters were not required to subscribe for any rights offer shares, the company added.



&#8220;The successful conclusion of the rights offer demonstrates the market&#8217;s strong confidence in our iconic brand and in our turnaround strategy,&#8221; Chief Executive Sean Summers said.



&#8220;It marks a crucial first step in our recapitalisation plan, positioning the group well to fund long-term sustainable growth.&#8221;



The proceeds of the rights offer will be used to pay down debt, stabilise the retailer&#8217;s balance sheet and invest in Pick n Pay&#8217;s turnaround strategy, which includes closing or converting over 100 loss-making Pick n Pay supermarket stores.



Summers is tasked with reviving, through a turnaround and two-step recapitalisation plan, a retail business that has been losing market share to bigger rivals Shoprite SHPJ.J and others for more than a decade.



A deterioration in the performance of the group&#8217;s core Pick n Pay supermarket business resulted in a substantial trading loss in the Pick n Pay division of 1.5 billion rand and an overall loss at group level of 3.2 billion rand in the 52 weeks ended Feb. 25.



At the same time its net debt escalated to 6.1 billion rand in the year.



($1 = 18.4525 rand)



(Reporting by Nqobile Dludla; Editing by Emelia Sithole-Matarise)

FILE PHOTO: Pick n Pay sales grow but warns on extra costs from power cuts

South African grocer Pick n Pay’s rights offer oversubscribed

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-820x547.jpg" alt="" class="wp-image-506008" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ugandan shilling and US dollars in the draw at a foreign exchange currency bureau in Kampala, Uganda, on Wednesday, Aug. 16, 2023. Uganda&#8217;s central bank said it stands ready to act if the World Bank&#8217;s decision to halt new funding over the country&#8217;s passage of anti-LGBTQ legislation impacts the currency further. Photographer: Luke Dray/Bloomberg via Getty Images</figcaption></figure>



KAMPALA, Aug 5 (Reuters) &#8211; The Ugandan shilling was weaker on Monday due to increased demand for dollars from commercial banks, traders said.



At 0916 GMT, commercial banks quoted the shilling at 3,725/3,735, compared with Friday&#8217;s closing rate of 3,718/3,728.



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

Ugandan Economy Following Rate Cut

Ugandan shilling weakens due to increased commercial bank FX demand

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2.png" alt="" class="wp-image-527193" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2-300x200.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2-135x90.png 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2-768x512.png 768w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Mobile money has exploded across African economies as an enabler of financial inclusion by bringing in large swaths of the population that remained unbanked into the fold to participate in economies across the continent.



According to <a href="https://www.gsma.com/sotir/wp-content/uploads/2024/03/GSMA-SOTIR-2024_Report.pdf">GSMA&#8217;s 2024 State of the Industry Report on Mobile Money</a>, registered mobile money accounts grew by 12% to 1.75 billion in 2023 while transaction values for international remittances via mobile money grew to almost $29 billion and merchant payments by 14% to around $74 billion.



Today, consumers can do anything with a mobile wallet that they can accomplish with a traditional bank account or card. In Kenya, where the mobile money market reached <a href="https://www.imarcgroup.com/kenya-mobile-money-market">$133.2 billion</a> in 2023 and M-Pesa holds a <a href="https://african.business/2023/10/african-banker/kenyas-higher-mobile-money-ceiling-risks-fanning-inflation">96.5%</a> market share, consumers can buy groceries from a grocer, purchase goods from the market, pay electricity bills or top up airtime with a simple code from M-Pesa. But, they’re not guaranteed to be able to do so outside of the country, region, or with international properties.



While many of the world’s largest digital merchants have started accepting mobile money payments, most international merchants still do not. This has meant that utilizing mobile money in the global commercial space is cumbersome, resulting in a gap between financial inclusion locally within the continent and access to the global financial system. Essentially, this means that individuals using mobile money can’t do things like make payments on an international airline’s website or pay for a Netflix account, small businesses can’t purchase ads on social media platforms like Facebook or search engines like Google, and content creators can’t get paid by the social media platforms they make content on.



Fortunately, card scheme payment rails have the ability to bridge that gap as cards continue to be the preferred payment method for consumers and merchants alike. That’s why it’s imperative to move beyond the idea that African economies will not adopt cards because of mobile money and instead look towards increased interoperability between mobile money wallets and card networks.



<h2 class="wp-block-heading" id="h-connecting-africa-to-itself-and-the-world">Connecting Africa to itself and the world</h2>



Much like the continent itself, the payments environment in Africa is highly dynamic and diverse. Across individuals and countries, payment types can vary significantly, resulting in a splintered and disconnected payment ecosystem. For example, when purchasing from Takealot in South Africa, consumers have the option to pay by credit card, an electronic fund transfer (EFT) from their bank or use domestic-flavored payment solutions such as PayFast, Ozow or Discovery Miles. However, international merchants or companies would have to integrate with each of these different payment service providers individually in every single economy on the continent in order to cater to a wide range of consumers, which is simply not feasible.



According to the <a href="https://www3.weforum.org/docs/WEF_Defining_and%20Measuring_Interoperability_2022.pdf">World Economic Forum</a>, the varied technical standards, laws and regulations that span countries across Africa contribute to the fact that historically many digital payment methods were closed loops and not interoperable with one another. Additionally, established mobile money interoperability in countries was usually limited to cases such as person-to-person transfers while merchant payments weren’t really considered.



But, advancements in payments interoperability technologies as well as strategic partnerships are facilitating the innovation needed to both achieve the desired convenience, speed and accessibility within the payments space while also enabling merchants to accept payments from and people to make payments to anyone .



Although before, people would need to transfer funds from their mobile wallet to a bank account and then use the bank-issued card to make a payment, this interoperability between the two legacy platforms—mobile wallet and card—means that both individuals and businesses are able to make direct payments by simply linking the two together.



Onafriq’s own partnership and subsequent acquisition of GTP, the number one processor for prepaid cards in Africa, in 2022 underscores the importance of card and mobile wallet interoperability by enabling participation in the global digital commerce environment, connecting traditional card scheme ecosystems such as Visa and Mastercard to the mobile money world.



Now, instead of a prefunded card where money can only be loaded on and not withdrawn, users can easily move money between their card and wallet. And, with digital cards, card networks can now be embedded directly onto the wallet app instead of carrying around a physical card. Even global players like Visa and Mastercard are realizing that the only way to be successful in Africa is to play hand in hand with mobile money clients and cater to their needs &#8211; as evidenced by Mastercard’s <a href="https://techpoint.africa/2024/02/06/mastercard-acquires-minority-stake-momo/">$200 million minority stake</a> in MTN’s fintech division.



<h2 class="wp-block-heading" id="h-making-borders-matter-less">Making borders matter less</h2>



As the world, and Africa, becomes more connected and digitalised, consumers are branching out in terms of where they’re purchasing goods from and merchants are catering to a more global customer base.



As such, African businesses and consumers alike should be able to make payments to any destination easily and through whichever payment channel they prefer. Cross-border payments need to become faster, cheaper, more transparent and accessible, while also ensuring their safety and security.



Payments interoperability between mobile money and cards will enable an ecosystem whereby you don’t need to link different payment methods, systems, and currencies to one another to ensure that no matter where you are, where you’re sending money to, or where you’re purchasing from, there is nothing standing in your way. Ultimately, ensuring that these different payment products are able to understand and speak to each other is enabling a more inclusive and accessible financial services landscape, making it as easy as possible for people to perform transactions in a way that is both affordable and reliable.

Interoperability between mobile money and card is enabling Africa’s access to the global financial system

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-820x547.jpg" alt="" class="wp-image-515322" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigerian police personnel patrol the streets, amid ongoing anti-government demonstrations against bad governance and economic hardship, in Lagos, Nigeria August 4, 2024. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



LAGOS, Aug 5 (Reuters) &#8211; Protests in Nigeria over the soaring cost of living ebbed on Monday, with only a few hundred people turning out in major cities following a deadly crackdown by security forces since the demonstrations began last week.



Hundreds of thousands of people have taken to the streets in the capital Abuja, Lagos and other big cities during the protests against economic hardship and crime, which started on Thursday and were meant to continue until Aug. 10.



Amnesty International said at least 13 people have been killed in clashes with police since the start of the protests, which were dubbed &#8220;#10DaysOfRage&#8221;. Police put the death toll at seven, saying some of the fatalities were caused by accidents and an explosive device.



A tough police response and a call for a protest pause by President Bola Tinubu appeared to have dampened the demonstrations, which came weeks after data showed annual inflation hit a 28-year high of 34.19% in June.



In the commercial hub of Lagos, where demonstrations have been largely peaceful, about 100 people gathered at the protest venue singing and chanting &#8220;we are hungry&#8221;. In Abuja, there were no signs of protests at the main stadium where protesters have been gathering since Thursday.



In the north of the country, about 200 protesters were dispersed by armed security forces in Maiduguri, capital of Borno state, while in Katsina, security forces fired teargas at protesters who were chanting &#8220;hunger and insecurity are killing us&#8221;.



Curfews have been imposed in parts of the north, which has seen some of the largest and fiercest protests, and in the central state of Plateau.



On Sunday, Tinubu called for an end to violence and said he was always open to dialogue.



Tinubu, in office since May 2023, defended his economic reforms, which have included a partial end to costly petrol and electricity subsidies and devaluation of the naira, as necessary to reverse years of economic mismanagement.



(Additonal reporting by Ope Adetayo in Abuja, Ahmed Kingimi in Maiduguri and Hamza Ibrahim in Kano; Writing by Elisha Bala-Gbogbo;Editing by Angus MacSwan and Helen Popper)

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home

EM stocks recover after bruising selloff, dollar recovery weighs on currencies

UJ soars to top its highest-ever position in the global university rankings

Kenyan shilling eases slightly; expected to hold steady

Nedbank raises non-interest revenue growth guidance after sold first half

Kenya’s Mobius, maker of rugged cars for African roads, calls it a day

South African rand claws back losses as risk sentiment improves

South African Markets – Factors to watch on Aug 6

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U.S. crude oil falls to six-month low as market sells off on recession fears

South African rand, stocks sink as US recession fears hit riskier assets

South African banks’ earnings in spotlight ahead of first rate cuts

Why Monthly Home Payments Are Skyrocketing Right Now

Congolese police officers flee to Uganda as fighting intensifies

South African grocer Pick n Pay’s rights offer oversubscribed

Ugandan shilling weakens due to increased commercial bank FX demand

Interoperability between mobile money and card is enabling Africa’s access to the global financial system

Nigerian protests fizzle out amid deadly police crackdown

News Tips

Advertise With Us

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