<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)

Nigerians continue to protest against economic hardship

Nigerian protests fizzle out amid deadly police crackdown

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2-820x462.jpeg" alt="" class="wp-image-515303" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man looks at an electronic boarddisplaying stock prices of the Nikkei 225 listed on the Tokyo Stock Exchange in Tokyo on April 30, 2024.  Kazuhiro Nogi | Afp | Getty Images</figcaption></figure>



Investors on Monday turned to safe-haven assets as a global stock sell-off deepened, following weaker-than-expected U.S. jobs data at the end of last week.



The disappointing jobs report spurred investor fears that the Federal Reserve made a mistake last week when it kept interest rates unchanged, and that the world’s largest economy is headed toward a recession.



The stock sell-off has also been exacerbated by volatility in some of the major earnings and a more hawkish Bank of Japan, which has led to speculation that the popular yen “carry trade” has imploded over a short-term basis. A “carry trade” takes place when investor borrows in a currency with low interest rates, such as the yen, and reinvests the proceeds in a currency with a higher rate of return.



On Monday morning, the Swiss franc strengthened 1.2% against the dollar to trade at 0.847 against the greenback, or its strongest level since January this year.



Similarly, U.S. Treasury yields extended their fall to notch a one-year low. At 2:41 a.m. ET, the yield on the 10-year Treasury was down by over eight basis points to 3.7099%. The 2-year Treasury yield was last trading at 3.7315% after falling by around 14 basis points. The yield on Japan’s 10-year government bond also dipped to 0.204%.



Gold futures climbed 0.38% to trade at $2,479.2 per ounce.



The buying was in sharp contrast to the selling seen in the stock markets. U.S. stock futures fell early Monday, with the Dow Jones Industrial Average futures declining by some 600 points by 4 a.m. ET, or roughly 1.5%. S&amp;P 500 futures and Nasdaq-100 futures dipped 2.8% and 4.9%, respectively.



Japan stocks confirmed a bear market in Asia overnight. The 12.4% loss on the Nikkei — which brought it to close at 31,458.42 — marked the worst day for the index since the “Black Monday” of 1987. The loss of 4,451.28 points on the index was also the largest decline in terms of points in its entire history.



In Europe, the regional Stoxx 600 index was 2.34% lower, with all sectors and major regional bourses trading in the red. Tech stocks shed as much as 5% before paring losses slightly to trade down 2.8%. Mining stocks also lost 3.65%, while banks were 3.22% lower.



Ted Alexander, chief investment officer at BML Funds, said that the current volatility in markets has “been a long time coming,” and that it was not a reason to panic.



“Everyone’s been expecting it for a while, [it’s] great for active managers,” he told CNBC via email, adding that the shake up may actually bring equity investors back if stocks offer better value.



“Stock markets aren’t cooked yet. Don’t abandon some exposure to tech and growth,” Alexander said.



—CNBC’s Sarah Min and Lim Hui Jie contributed to this report

107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2

A global stock rout is deepening with investors fleeing to safe havens

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-820x429.jpg" alt="" class="wp-image-515283" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Employees pack bottles of Kenya Cane spirit from a conveyor belt at the East African Breweries Limited factory in Ruaraka factory in Nairobi, Kenya April 6, 2018. REUTERS/Thomas Mukoya </figcaption></figure>



NAIROBI, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;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.



The Stanbic Bank Kenya Purchasing Managers&#8217; Index (PMI) fell to&nbsp;43.1 from 47.2 in June. Readings below 50.0 signal a contraction in activity.



&#8220;Protests in Kenya caused disruption to the private sector in July, leading to a marked deterioration in business conditions,&#8221; Stanbic Bank Kenya said in comments accompanying the survey.



&#8220;Political instability led to a reluctance among customers to commit to new orders, while the protests themselves in some cases blocked access to businesses and prevented them from opening.&#8221;



More than 50 people have been killed since mid-June, according to the government-funded Kenya National Commission on Human Rights (KNCHR), after protesters began taking to the streets to oppose tax increases in a now-shelved proposed law by President William Ruto&#8217;s government.



The youth-led marches continued after Ruto withdrew the tax legislation, with protesters calling for the president to resign and an end to what they called widespread government corruption and inefficiencies.



The intensity of the protests has since reduced.



&#8220;Private sector business activity deteriorated, reflecting ongoing demonstrations and unrest in parts of Kenya for some weeks now, discouraging output and new orders,&#8221; Christopher Legilisho, an economist at Stanbic Bank, said.



(Reporting by George Obulutsa; Editing by Susan Fenton)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ

Kenya private sector activity falls in July amid public unrest, PMI shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-820x517.jpg" alt="" class="wp-image-515280" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-820x517.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-768x484.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-1536x968.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker looks on next to loafs of bread at a spaza shop in Thembisa, on the East Rand, in South Africa, August 2, 2023. REUTERS/Siphiwe Sibeko/file photo</figcaption></figure>



JOHANNESBURG, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;South African private sector activity remained subdued in July amid weaker sales and increased supply-side pressures, a survey showed on Monday.



The S&amp;P Global South Africa Purchasing Managers&#8217; Index (PMI) rose slightly to 49.3 in July from 49.2 in June, but remained below the 50 level which marks growth for the second month in a row.



South Africa&#8217;s private sector saw &#8220;new orders continuing to decline and supplier performance worsening as global transport issues and domestic port congestion hindered vendors,&#8221; said David Owen, senior economist at S&amp;P Global Market Intelligence.



This forced businesses to cut their output at the sharpest rate in four months.



South Africa&#8217;s logistics firm Transnet suspended operations at some of its ports in July as strong winds and waves lashed parts of the country, setting back efforts to clear backlogs.



However, firms were upbeat that conditions would improve in the coming 12 months, Owen said.



&#8220;Many suggested that the stabilisation in the political landscape should lead to greater confidence and a pick-up in spending, while reduced load shedding (power cuts) and softer price pressures are also expected to support growth,&#8221; Owen added.



(Reporting by Tannur Anders; Editing by Susan Fenton)

A worker looks on next to loafs of bread

South Africa business activity contracts again in July, PMI shows

<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 5 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Monday.



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



South Africa&#8217;s Johannesburg Stock Exchange will release data on foreigners&#8217; buying and selling of bonds and stocks during the previous week.



South Africa&#8217;s government will hold its weekly auction for Treasury bills.



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



The South African rand firmed on Friday as U.S. economic data showed a slowdown in jobs growth in July and a rise in the unemployment rate, boosting bets of a September rate cut in the world&#8217;s biggest economy and pressuring the dollar.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed about 1.7% down. South Africa&#8217;s benchmark 2030 government bond was stronger, with the yield down 9.5 basis points at 9.25%.



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



Share markets tumbled and bonds rallied in Asia on Monday as fears the United States could be heading for recession sent investors rushing from risk assets while wagering that rapid fire rate cuts will be needed to rescue growth.



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



U.S. stocks sold off for a second straight session on Friday, and the Nasdaq Composite confirmed it was in correction territory after a soft jobs report stoked fears of an oncoming recession.



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



Prices of safe-haven gold were flat on Monday as some profit-taking partially offset support from U.S. recession jitters and rising expectations of a September rate cut from the Federal Reserve.



&#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; Engineering economic recovery set to take centre stage at ANC lekgotla



&#8211; SA can create up to 275,000 green jobs by 2030, report shows



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Aug 5

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



NAIROBI, Aug 5 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Monday.



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



Share markets tumbled and bonds rallied in Asia on Monday as fears the United States could be heading for recession sent investors rushing from risk assets while wagering interest rates will have to fall rapidly to rescue growth.



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



Oil prices hovered at eight-month lows on Monday as fears of a recession in the United States, the world&#8217;s top oil consumer, offset concerns that escalating tensions in the Middle East may affect supplies from the largest producing region.



The South African rand firmed on Friday as U.S. economic data showed a slowdown in jobs growth in July and a rise in the unemployment rate, boosting bets of a September rate cut in the world&#8217;s biggest economy and pressuring the dollar.



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



Nigeria&#8217;s President Bola Tinubu called on Sunday for a suspension of protests against a cost of living crisis, saying this would create an opportunity for dialogue, his first public comments since frustrated citizens took to the streets last week.



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



Kenya&#8217;s shilling slipped on Friday due to dollar demand from the manufacturing sector, traders said, adding that a credit rating review by S&amp;P Global later this month could be a big driver in the weeks ahead.



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



Global credit ratings agency Fitch downgraded Kenya&#8217;s sovereign rating to &#8220;B-&#8221; from &#8220;B&#8221; on Friday, citing heightened risks to the East African country&#8217;s public finances after the government backtracked on key revenue measures following protests.



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



Kenya&#8217;s finance minister nominee on Saturday defended the International Monetary Fund&#8217;s role in supporting the economy for now, but said the country should become more self-reliant by cutting its budget deficit and shifting to cheaper debt.



<h2 class="wp-block-heading" id="h-ethiopia-debt">ETHIOPIA DEBT</h2>



Ethiopia will save $4.9 billion from its debt restructuring exercise, State Finance Minister Eyob Tekalign said on Friday.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Aug 5

<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/TI3IMIAIRNMQLKEZYNUUIVZMGM-scaled.jpg" alt="" class="wp-image-515273" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Nigerian security forces stand guard during the third day of anti-government demonstrations against bad governance and economic hardship in Lagos, Nigeria August 3, 2024. REUTERS/Francis Kokoroko</figcaption></figure>



ABUJA, Aug 4 (Reuters) &#8211; Nigeria&#8217;s President Bola Tinubu called on Sunday for a suspension of protests against a cost of living crisis, saying this would create an opportunity for dialogue, his first public comments since frustrated citizens took to the streets last week.



Amnesty International has said at least 13 people were killed in clashes with security forces on the first day of protests on Thursday. Police denied using excessive force and said seven people had died as of Saturday &#8211; four from an explosive device during a march in northeast Borno state, two who were hit by a car and another who was shot by a guard when protesters looted a shop.



In a televised broadcast, Tinubu called for an end to violence in several states since the protests started, saying he was always open for dialogue.



&#8220;My dear&nbsp;Nigerians, especially our youth, I have heard you loud and clear. I understand the pain and frustration that drive these protests, and I want to assure you that our government is committed to listening and addressing the concerns of our citizens,&#8221; he said.



Nigerians have been mobilising online to organise protests against economic hardship and bad governance and have called for a cut in petrol prices and electricity tariffs, among several demands.



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



He government revenues had more than doubled to 9.1 trillion naira ($5.65 billion) in the first half of this year while 68% of revenue now went to debt servicing, down from 97% before he took office in May last year.



The government was also ramping up spending on infrastructure projects, started a loan scheme for university students and was building thousands of housing units across&nbsp;Nigeria&#8217;s 36 states, the president said.



&#8220;But we must not let violence and destruction tear our nation apart,&#8221; said Tinubu.



($1 = 1,610.9000 naira)



(Writing by MacDonald Dzirutwe; Editing by Frances Kerry)

Nigerians continue third day of hardship protests

Nigeria’s president calls for end to protests against economic hardship

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="929" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS.jpeg" alt="" class="wp-image-515270" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS.jpeg 929w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS-768x432.jpeg 768w" sizes="auto, (max-width: 929px) 100vw, 929px" /><figcaption class="wp-element-caption">Pedestrians cross an intersection in the Shibuya district of Tokyo, Japan, on Tuesday, Feb. 6, 2024.  Bloomberg | Bloomberg | Getty Images</figcaption></figure>



Japan stocks confirmed a bear market on Monday as Asia-Pacific markets continued the sell-off from last week, with the Nikkei 225 and Topix dropping over 12%.



The benchmark indexes have fallen more than 20% from their all-time highs on July 11.



The 12.4% loss on the Nikkei — which saw it close at 31,458.42 — was the worst day for the index since the “Black Monday” of 1987. The loss of 4,451.28 points on the index was also the largest in terms of points in its entire history.



The Nikkei also erased all its gains so far this year, moving into a loss position year to date.



The broad-based Topix also saw a rout as it tumbled 12.23% and closed at 2,227.15.



Heavyweight trading houses such as Mitsubishi, Mitsui and Co, Sumitomo and Marubeni all plunged over 14%, with Mitsui seeing a wipeout of almost 20% of its market cap.



Monday’s decline follows Friday’s rout when Japan’s Nikkei 225 and Topix fell more than 5% and 6%, respectively. The broader Topix marked its worst day in eight years, while the Nikkei marked its worst day since March 2020.



In Monday trading, the yen also strengthened to its highest level against the dollar since January, and was last trading at 142.09.



South Korea’s Kospi fell 8.77%, closing at 2,441.55, and the small-cap Kodaq saw a 11.3% wipeout, ending at 691.28.



Due to the magnitude of the sell-off, the exchanges hit circuit breakers, halting trade for the Kospi index at 2.14 p.m. Seoul and at 1.56 p.m. for the Kosdaq. The halt was for 20 minutes. Circuit breakers are activated if stocks rise or fall 8%.



Investors, meanwhile, awaited key trade data from China and Taiwan this week, a well as central bank decisions from Australia and India.



China’s service sector expanded at a faster pace in July, with the country’s purchasing managers’ index climbing to 52.1 in July, up from 51.2 in June.



The Caixin survey said the acceleration of growth was due to faster new business growth, “supported by sustained improvements in underlying demand conditions and an expansion of services offerings.”



Taiwan’s benchmark index, the Taiwan Weighted Index, was down over 8%, dragged by tech and real estate stocks , while Australia’s S&amp;P/ASX 200 fell 3.7% to 7,649.6.



The Reserve Bank of Australia kicks off its two-day monetary policy meeting Monday. Economists polled by Reuters expect the central bank to hold rates steady at 4.35%, but markets will monitor the monetary policy statement for clarity on whether the RBA is still considering a rate hike.



Hong Kong Hang Seng index was down 1.61%, while mainland China’s CSI 300 was down 0.48%, seeing the smallest loss in Asia.



On Friday in the U.S., stocks fell sharply as a much weaker-than-anticipated jobs report for July ignited worries that the economy could be falling into a recession.



The Nasdaq was the first of the three major benchmarks to enter correction territory, down more than 10% from its record high. The S&amp;P 500 and Dow were 5.7% and 3.9% below their all-time highs, respectively.



The S&amp;P 500 dropped 1.84%, while the Nasdaq Composite lost 2.43%. The Dow Jones Industrial Average fell 610.71 points, or 1.51%.



—CNBC’s Pia Singh and Hakyung Kim contributed to this report.

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Japan’s Nikkei logs worst day since 1987 Black Monday crash

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="960" height="730" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015858-1722630576753-gettyimages-2165010509-ms1_7647_t8akammx.jpeg" alt="" class="wp-image-515252" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015858-1722630576753-gettyimages-2165010509-ms1_7647_t8akammx.jpeg 960w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015858-1722630576753-gettyimages-2165010509-ms1_7647_t8akammx-300x228.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015858-1722630576753-gettyimages-2165010509-ms1_7647_t8akammx-820x624.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015858-1722630576753-gettyimages-2165010509-ms1_7647_t8akammx-118x90.jpeg 118w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015858-1722630576753-gettyimages-2165010509-ms1_7647_t8akammx-768x584.jpeg 768w" sizes="auto, (max-width: 960px) 100vw, 960px" /><figcaption class="wp-element-caption">Stock market numbers are displayed on a screen at the New York Stock Exchange during afternoon trading on August 02, 2024 in New York City. Michael M. Santiago | Getty Images</figcaption></figure>



LONDON — European stocks fell sharply at the start of the Monday session, as global volatility continues amid concerns of a looming U.S. recession.



The regional Stoxx 600 index was 2.77% lower by 8:19 a.m. London time, with all sectors and major regional bourses trading in the red. Tech stocks led losses, shedding as much as 5% before paring losses slightly to trade down 4.7%, while banks were 3.7% lower.



The lower start for major European markets comes amid wider global volatility; U.S. stock futures fell Sunday night following a turbulent last week for Wall Street, in which the Nasdaq Composite dropped into correction territory. Asia-Pacific markets also continued the selloff overnight.



Earnings in Europe come from Uniper, Infineon, Monte dei Paschi and Palantir Technologies on Monday. Data releases include services purchasing managers’ index data from the U.K, Italy and Spain.

108015858-1722630576753-gettyimages-2165010509-ms1_7647_t8akammx

European markets plunge 2.7% as global volatility deepens; tech stocks shed 4.7%

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5-820x461.jpeg" alt="" class="wp-image-515232" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Nurphoto | Nurphoto | Getty Images</figcaption></figure>



The cryptocurrency market plummeted in value on Sunday, as investors continued selling out of risky assets.



Led by a drop of 11% in bitcoin in the past 24 hours and a 21% plunge in ether, the overall value of cryptocurrencies sank by about $270 billion, according to CoinGecko data.



The selloff in the crypto market coincided with a broader slide in equities in Asia-Pacific markets. Japan’s Nikkei 225 dropped as much as 7%, extending losses that began last week, after the Bank of Japan announced it would hike its benchmark interest rate to the highest level in 16 years.



In the U.S. the Nasdaq slid 3.4% last week into correction territory, capping off the tech-heavy index’s worst three-week stretch since September 2022, when the market was in freefall. Amazon and Nvidia contributed to the declines.



Last week’s drop in stocks was tied in part to disappointing earnings, a weaker-than-expected jobs report, higher unemployment and a declining manufacturing sector. The U.S. Federal Reserve opted to hold its benchmark rate steady and didn’t promise a rate cut in September, which many market experts had baked into their forecast. Lower interest rates tend to correlate with better performance for risky assets.



Bitcoin’s price has reached its lowest level since February. The world’s largest cryptocurrency is trading at about $54,000. It’s still up almost 23% this year.



The price of ether, the native token underpinning the ethereum blockchain, fell to around $2,300 and has erased its gains for the year. Binance’s BNB token was down more than 15% and solana is trading 10% lower.



Investors are also looking out for new trade data from China and Taiwan this week, as well as central bank decisions in both India and Australia.



The latest crypto wipeout will be felt by a broader base of investors after the SEC this year approved new spot exchange-traded funds for bitcoin and ether. The ETFs have seen hundreds of millions of dollars flow into the coins. On Friday, CNBC reported that Morgan Stanley would soon allow its 15,000 financial advisors to pitch bitcoin ETFs to its clients, a first for Wall Street.

107212428-1679412407200-gettyimages-1243440706-raa-ethereum220922_npJS5

Crypto selloff wipes out $270 billion in value as bitcoin, ether plunge

Why Walgreens And CVS Are Shutting Down Thousands Of Stores

Putin’s Trader: How Russian hackers stole millions from U.S. investors

Could planes run on hydrogen?

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="884" height="442" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015047-1722527876434-108015047-1722527728357-gettyimages-2159383304-jr029159_ghjrzhsy.jpg" alt="" class="wp-image-514258" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015047-1722527876434-108015047-1722527728357-gettyimages-2159383304-jr029159_ghjrzhsy.jpg 884w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015047-1722527876434-108015047-1722527728357-gettyimages-2159383304-jr029159_ghjrzhsy-300x150.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015047-1722527876434-108015047-1722527728357-gettyimages-2159383304-jr029159_ghjrzhsy-820x410.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015047-1722527876434-108015047-1722527728357-gettyimages-2159383304-jr029159_ghjrzhsy-160x80.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108015047-1722527876434-108015047-1722527728357-gettyimages-2159383304-jr029159_ghjrzhsy-768x384.jpg 768w" sizes="auto, (max-width: 884px) 100vw, 884px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Job growth in the U.S. slowed much more than expected during July and the unemployment rate ticked higher, fueling fears of a broader economic slowdown, the Labor Department reported Friday.



Nonfarm payrolls grew by just 114,000 for the month, down from the downwardly revised 179,000 in June and below the Dow Jones estimate for 185,000. The unemployment rate edged higher to 4.3%, its highest since October 2021.



Average hourly earnings, a closely watched inflation barometer, increased 0.2% for the month and 3.6% from a year ago. Both figures were below respective forecasts for 0.3% and 3.7%.



Stock market futures added to losses following the report while Treasury yields plunged.



The labor market had been a pillar of economic strength but has recently shown some trouble signs, and the July payrolls increase was well below the average of 215,000 over the past 12 months.



“Temperatures might be hot around the country, but there’s no summer heatwave for the job market,” said Becky Frankiewicz, president of the ManpowerGroup employment agency. “With across-the-board cooling, we have lost most of the gains we saw from the first quarter of the year.”



From a sector standpoint, health care again led in job creation, adding 55,000 to payrolls. Other notable gainers included construction (25,000), government (17,000), and transportation and warehousing (14,000). Leisure and hospitality, another leading gainer over the past few years, added 23,000.



The information services sector posted a loss of 20,000.



While the survey of establishments used for the headline payrolls number was discouraging, the household survey was even more so, with growth of just 67,000, while the ranks of the unemployed swelled by 352,000. The participation rate as a share of the working-age population edged higher to 62.7%.



The report adds to mixed signals recently about the economy and with financial markets on edge about how the Federal Reserve will respond.



Though markets on Wednesday cheered indications from the Fed that an interest rate cut could come as soon as September, that quickly turned to trepidation when economic data Thursday showed an unexpected jump in filings for unemployment benefits and a further weakening of the manufacturing sector.



That triggered the worst sell-off of the year on Wall Street and renewed fears that the Fed may be waiting too long to start cutting interest rates.&nbsp;Easing wage gains could help policymakers feel more confident that inflation is progressing back to their 2% goal.



The rise in the unemployment rate brings into play the so-called Sahm Rule, which states that the economy is in recession when the three-month average of the jobless level is half a percentage point higher than the 12-month low. In this case, the unemployment rate was 3.5% in July 2023 before it began its gradual ascent. The three-month unemployment rate average moved up to 4.13%.



“The latest snapshot of the labor market is consistent with a slowdown, not necessarily a recession,” said Jeffrey Roach, chief economist at LPL Financial. “However, early warning signs suggest further weakness.”



Roach pointed out that the ranks of those working part-time for economic reasons jumped to 4.57 million, an increase of 346,000 to the highest level since June 2021.



An alternate measure of unemployment that includes discouraged workers and those holding part-time jobs for economic reasons surged 0.4 percentage point to 7.8%, the highest since October 2021.



Long-term unemployment also ticked higher. Those reporting being out of work for 27 weeks or more totaled 1.54 million, the most since February 2022.



Wall Street had been bracing for modest gains from the July payrolls report, in part over concerns about growth but also from residual impacts from Hurricane Beryl. The storm badly damaged parts of Texas including the Houston metropolitan area.&nbsp;



Despite some anxiety over the state of economic growth, Fed Chair Jerome Powell on Wednesday expressed confidence about the “solid” economy and said easing inflation data is raising confidence that the central bank can cut soon.&nbsp;



Markets have fully priced in a rate cut of at least a quarter percentage point at each of the three remaining Fed meetings this year. Odds are rising that the Fed even may go beyond traditional quarter point reductions.



“While the labor market has remained remarkably resilient over these past two years of elevated interest rates, it’s important for the Federal Reserve to stay ahead of any further labor market slowing by proceeding with its expected September rate cut,” said Clark Bellin, chief investment officer at Bellwether Wealth.



Correction: The forecast for average hourly earnings was for an increase of 0.3% for the month. An earlier version misstated the percentage.

108015047-1722527876434-108015047-1722527728357-gettyimages-2159383304-jr029159_ghjrzhsy

U.S. jobs growth totals 114,000 in July, much less than expected, as unemployment rate rises to 4.3%

Why Starbucks Is Struggling

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1203" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FarmerLifeLine_Edit_November06_125-scaled.webp" alt="" class="wp-image-514255" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FarmerLifeLine_Edit_November06_125-scaled.webp 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FarmerLifeLine_Edit_November06_125-300x176.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FarmerLifeLine_Edit_November06_125-820x482.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FarmerLifeLine_Edit_November06_125-153x90.webp 153w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FarmerLifeLine_Edit_November06_125-768x451.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FarmerLifeLine_Edit_November06_125-1536x902.webp 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Farmer Marion Nyawira Mburu uses her phone to pay for FarmerLifeline crop pest detection device at her farm in Nairobi, Kenya, on November 6, 2023. Royal Academy of Engineering 2024/Handout via Thomson Reuters Foundation</figcaption></figure>



JOHANNESBURG, Aug 2 (Thomson Reuters Foundation)&nbsp;&#8211;&nbsp;Growing up in rural Nigeria, Adaeze Akpagbula spent her school years baby-sitting her family&#8217;s chicks through the night, adjusting the coal heater, food and water needed to keep the poultry, and the family income, alive.



Despite her best efforts, unpredictable temperatures, humidity and air quality changes led to the deaths of thousands of chicks, a lesson that would propel her to commit her life to making African farms more climate-resilient.



&#8220;Nigeria&#8217;s unprecedented rainfalls and weather patterns are not predictable, and with heat and cold stresses our birds were dying,&#8221; the 34-year-old agricultural engineer said in a telephone interview with the Thomson Reuters Foundation.



&#8220;We understand that innovation is pivotal to combating climate-related issues around food insecurity,&#8221; she said.



Akpagbula last year launched a remote-sensing device called PenKeep that monitors and controls environmental conditions in poultry farms. She is now extending the technology into aquaculture and greenhouse farms.



Alongside container farms in South Africa cultivating soldier flies for animal feed, solar-powered fish and crop dryers in Tanzania and machine-learning pest detectors in Kenya, Africans are coming up with innovative solutions to overcome the effects of climate change on food production.



Such solutions are going to be needed as Africa, according to a new United Nations report, is the continent most impacted by hunger.



Together with conflict and economic crises, climate shocks are leaving Africa at the epicentre of a hunger crisis, with one in five &#8211; some 300 million people &#8211; short of food.



It is also the continent most vulnerable to climate shocks, while contributing the least to carbon emissions.



&#8220;Current societal inequalities, such as resource constraints, make it even more difficult to source funds to adapt to these changes,&#8221; said Mulako Kabisa, from the Global Change Institute research platform at the University of the Witwatersrand in Johannesburg.



&#8220;Home-grown solutions matter because they take into cognizance the local context &#8230; and what will be sustainable in the long run,&#8221; she said in emailed comments.



<h2 class="wp-block-heading" id="h-sensors-and-solar">SENSORS AND SOLAR</h2>



PenKeep&#8217;s solar-powered device interprets data from sensors that monitor environmental changes including temperature, water levels and air quality in poultry coops. Farmers are alerted of condition changes through SMS, email or an alarm.



It is being used by more than 1,200 chicken farmers in western and northern Nigeria, with more than 100,000 chickens monitored in the company&#8217;s first six months. Subscriptions of around $15 a month make it more affordable for farmers, Akpagbula said.



Users can also use an artificial intelligence (AI) management app called FS Manager that provides farmers with information including management advice, weather updates and book-keeping services.



&#8220;Nigeria has millions of poultry farmers &#8230; but they are not producing enough &#8230; because they are spending so much on energy and they have a lot of poultry mortality as a result of their environment,&#8221; said Akpagbula.



Farmers using PenKeep have seen poultry mortality rates decrease by 72%, Akpagbula said.



In east Africa, Tanzanian Evodius Rutta also utilises the continent&#8217;s abundance of sun through his MAVUNOLAB Solar Dryer that helps subsistence fish processors and farmers rapidly dry out produce including fish, fruits and vegetables, preventing post-harvest food loss.



Small-scale fish processors at Lake Victoria in western Tanzania have begun using his dryer, reducing the drying time of 250 kg of fish from 12 hours to four.



Climate variability has led to erratic rains that can spoil up to 50% of fishermen&#8217;s harvests as they do not have access to cold storage, said Rutta, a sustainability researcher and MAVUNOLAB innovation hub founder.



&#8220;Because of the rains and high tides, it has also become very dangerous for fishermen that go to the sea and the lakes,&#8221; Rutta, told the Thomson Reuters Foundation in a telephone interview.



&#8220;We need low-cost solutions for farmers to adapt to changing climate patterns because it&#8217;s going to be unavoidable,&#8221; Rutta said, adding that he was getting requests from farmers in Zimbabwe, Uganda and Kenya to use his invention.



<h2 class="wp-block-heading" id="h-pest-detection">PEST DETECTION</h2>



Climate change can impact environmental factors such as temperature and humidity that can in turn influence the life cycle and spread of crop pests, according to the U.N.&#8217;s Food and Agriculture Organization.



Pests are already responsible for at least 40% of crop loss worldwide.



Kenyan computer scientist Esther Kimani witnessed this first-hand growing up when pests decimated up to one-third of her family&#8217;s pea, potato and maize crops in the south of Kenya.



By the time the pests were detected, the destruction was so severe that even using pesticides became pointless.



Kimani was inspired to invent the Early Crop Pest and Disease Detection Device &#8211; a solar-powered tool that uses AI and machine learning-enabled cameras to rapidly detect and alert farmers of pests and diseases.



Kimani&#8217;s invention is being used by more than 5,000 farmers across Kenya since its launch in 2020. A group-leasing model reduces the cost to each farmer to $3 per month.



The device also advises farmers about which pesticides to use when, according to predicted climatic changes.



Kimani estimates that more than 3,000 acres of land have been protected from pest infestation by her invention.



She recently won the Royal Academy of Engineering&#8217;s African Prize for Engineering Innovation, for which Akpagbula and Rutta were also short-listed.



<h2 class="wp-block-heading" id="h-climate-crisis">CLIMATE CRISIS</h2>



Some home-grown innovations are also focusing on protecting agricultural output while reducing carbon emissions.



South Africa&#8217;s Philafeed helps build tailor-made black soldier fly container farms. The fly larvae feed on food waste, diverting planet-heating methane emissions from landfills.



The larvae can also be used as a protein feed for livestock, reducing the need for carbon-intensive soya and fish meal.



The larvae manure, a byproduct known as frass, helps increase soil and plant tolerance against drought and flooding, and in turn can increase crop yield in times of climate uncertainty.



&#8220;Through black soldier flies we want farmers to be able to diversify their income if there is a failed season due to climate change,&#8221; said Maya Zaken, Philafeed co-founder.



Philafeed is currently piloting its new container model in Cape Town.



Despite initial funding challenges and struggles to get farmer buy-in, Akpagbula has faith that her innovation, alongside others on the continent, will soon become essential to farmers as climate shocks become more severe and more frequent.



&#8220;People always say why now? Why you doing this now?&#8221; said Akpagbula. &#8220;I tell them it&#8217;s because of the urgency of the climate crisis.&#8221;



(Reporting by Kim Harrisberg in Johannesburg; Editing by Jon Hemming. The Thomson Reuters Foundation is the charitable arm of Thomson Reuters.)

FarmerLifeLine_Edit_November06_125

Solar dry, soldier fly, AI: Africans fight hunger with innovation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="538" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-820x538.jpg" alt="" class="wp-image-513847" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-820x538.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-768x504.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-1536x1008.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man counts Ethiopia&#8217;s birr notes in Merkato, one of Africa&#8217;s biggest open air market, in Addis Ababa, Ethiopia, April 25, 2024. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



ADDIS ABABA, Aug 2 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia will enjoy $4.9 billion in relief from debt repayments when it completes its current restructuring exercise, State Finance Minister Eyob Tekalign said on Friday.



The East African country is putting its long-delayed debt overhaul back on track after securing a new International Monetary Fund financing programme.



&#8220;We will sign and finalise with each individual (creditor) country over the course of the next few months,&#8221; Eyob told Reuters, referring to the savings.



Total external debt stood at $28.38 billion in March this year, data from the finance ministry showed.



Eyob was expounding on remarks made by Prime Minister Abiy Ahmed late on Thursday to explain recent economic reforms to the public via a televised event.



Abiy said the new exercise would include savings of $200 million from the restructuring of its $1 billion Eurobond.



Abiy defended this week&#8217;s switch to a market-determined foreign exchange rate, saying it aimed to close the gap between the official and black market rates and did not amount to a devaluation of the currency.



The central bank allowed the birr to float freely on Monday, fulfilling a key condition for securing financial support from the International Monetary Fund and other creditors, and for putting the nation&#8217;s long-delayed debt restructuring back on track.



The birr has since then lost 31.5% against the dollar, to trade at 83.94 per greenback, the country&#8217;s biggest lender, Commercial Bank of Ethiopia, said on Friday, and some economic analysts and commentators have voiced concern that inflation could surge.



&#8220;Saying Ethiopia has devalued its currency is wrong,&#8221; Abiy said late on Thursday in a televised briefing&nbsp;on the&nbsp;new policy.



&#8220;There were two markets. One is 100 and the other is 50. So when the gap between the two became wide, it brought many dangers. So what we said, (the two) should be unified,&#8221; he said



While lifting foreign exchange trading restrictions helped Ethiopia clinch the IMF deal and funding from other creditors including the World Bank, concern about the policy&#8217;s inflationary impact on low-income households has led at least two local governments to crack down on shops raising prices.



The government and its creditors say the liberalisation will help the private sector make a bigger contribution to the economy and boost long-term growth.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa and Duncan Miriri; Editing by Helen Popper and Giles Elgood)

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Nigerian protests fizzle out amid deadly police crackdown

A global stock rout is deepening with investors fleeing to safe havens

Kenya private sector activity falls in July amid public unrest, PMI shows

South Africa business activity contracts again in July, PMI shows

South African Markets – Factors to watch on Aug 5

African Markets – Factors to watch on Aug 5

Nigeria’s president calls for end to protests against economic hardship

Japan’s Nikkei logs worst day since 1987 Black Monday crash

European markets plunge 2.7% as global volatility deepens; tech stocks shed 4.7%

Crypto selloff wipes out $270 billion in value as bitcoin, ether plunge

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Putin’s Trader: How Russian hackers stole millions from U.S. investors

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U.S. jobs growth totals 114,000 in July, much less than expected, as unemployment rate rises to 4.3%

Why Starbucks Is Struggling

Solar dry, soldier fly, AI: Africans fight hunger with innovation

Ethiopia to save $4.9 bln from debt restructuring, state minister says

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home

Nigerian protests fizzle out amid deadly police crackdown

A global stock rout is deepening with investors fleeing to safe havens

Kenya private sector activity falls in July amid public unrest, PMI shows

South Africa business activity contracts again in July, PMI shows

South African Markets – Factors to watch on Aug 5

African Markets – Factors to watch on Aug 5

Nigeria’s president calls for end to protests against economic hardship

Japan’s Nikkei logs worst day since 1987 Black Monday crash

European markets plunge 2.7% as global volatility deepens; tech stocks shed 4.7%

Crypto selloff wipes out $270 billion in value as bitcoin, ether plunge

Why Walgreens And CVS Are Shutting Down Thousands Of Stores

Putin’s Trader: How Russian hackers stole millions from U.S. investors

Could planes run on hydrogen?

U.S. jobs growth totals 114,000 in July, much less than expected, as unemployment rate rises to 4.3%

Why Starbucks Is Struggling

Solar dry, soldier fly, AI: Africans fight hunger with innovation

Ethiopia to save $4.9 bln from debt restructuring, state minister says

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