<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)

Ethiopia’s economy struggles due to shortage of foreign currency

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

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-scaled.jpg" alt="" class="wp-image-510212" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A worker at a foreign exchange currency bureau counts 1000 Ugandan shilling banknotes 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 2 (Reuters) &#8211; The Ugandan shilling was firmer on Friday, supported by a slowdown in demand for dollars from commercial banks and merchandise importers, traders said.



At 0940 GMT commercial banks quoted the shilling at 3,720/3,730, stronger than Thursday&#8217;s closing rate of 3,730/3,740.



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

Ugandan Economy Following Rate Cut

Ugandan shilling strengthens, low dollar demand helps

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1254" height="836" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w" sizes="auto, (max-width: 1254px) 100vw, 1254px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



Aug 2 (Reuters) &#8211; Emerging markets stocks slumped on Friday, tracking broader global risk-off sentiment as investors rushed for safe-haven assets amid worries about a U.S. economic slowdown.



MSCI&#8217;s index of emerging market stocks slumped 2.2%, set to clock its worst day in one year if losses hold, while an index of EM currencies was flat.



An initial boost to risk assets following the Federal Reserve&#8217;s meeting on Wednesday quickly gave way to concerns over global growth, after a weak U.S. ISM manufacturing report that followed further signs of economic slowdown in China.



&#8220;When China coughs, the world can catch a cold &#8230; emerging markets would be exposed here if risk sentiment were to sour further,&#8221; said Harry Mills, director at Oku Markets.



Some currencies in emerging Europe fared slightly better against a weaker dollar as investors turned to the safe haven Japanese yen and Swiss franc.



The Czech crown and Hungarian forint were up about 0.1% against the dollar, while the Polish zloty jumped 0.4% after falling in the previous session. The zloty gained 0.3% against the euro.



Both the Turkish lira and Indian rupee touched record lows against the greenback, while the Russian rouble slipped about 0.4%.



Focus now shifts to U.S. nonfarm payrolls data for July later in the day, where forecasts are for employment in the world&#8217;s largest economy to increase by 175,000.



&#8220;Investor confidence in the growth outlook may breathe a sigh of relief today should the payrolls number surprise to the upside, though, it&#8217;s a fight between investor sentiment and safety versus bets on Fed rate cuts,&#8221; Mills said.



Investors also grappled with rising geopolitical tensions, after the Israeli military said on Thursday that the head of Hamas&#8217; military wing, Mohammed Deif, was killed, a day after group leader Ismail Haniyeh was killed in Tehran.



Bourses in Turkey, Prague and Warsaw slumped between 0.7% and 1.7%, following emerging Asian equities that were also broadly lower.



Indexes in Taipei and Seoul led declines as a selloff in U.S. tech stocks and disappointing results from Intel weighed on the tech sector.



MSCI&#8217;s EM stock index was on track to fall for a third straight week, however, the currency index was set to rise about 0.3% in its best week since mid-May.



EM debt-focused funds saw outflows of $0.2 billion over the past week, according to data from Bank of America Global Research, though EM equity funds have seen about $4.5 billion in inflows over the past nine weeks.



Elsewhere, Ethiopia&#8217;s Prime Minister Abiy Ahmed defended the country&#8217;s decision to float its birr currency this week, a move which helped the country secure financing from both the International Monetary Fund and the World Bank.



However, the birr has slumped nearly 40% against the dollar since then.



(Reporting by Lisa Mattackal in Bengaluru; Editing by Conor Humphries)

Risk-off mood hits EM assets ahead of U.S. payrolls data

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-820x462.jpeg" alt="" class="wp-image-514180" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The lights of Frankfurt am Main’s banking skyline glow in the last light of day. Boris Roessler | Picture Alliance | Getty Images</figcaption></figure>



LONDON — European stocks extended losses on Friday amid a global downturn, as weak U.S. economic data sparked fears of a recession.



The regional Stoxx 600 index was down 1.43% at 9:34 a.m. Technology stocks dropped 3.6%, as U.S. giant Intel fell more than 21% in premarket trade after reporting a big earnings miss.



Global markets have been pulled lower by a flurry of central bank action — with the Bank of England cutting interest rates for the first time since 2020, the U.S. Federal Reserve holding rates and the Bank of Japan raising them this week — along with shaky corporate earnings and data releases.



The Stoxx 600 on Thursday suffered its worst session since the middle of June, weighed down by financials as French bank Societe Generale downgraded its outlook, and the BOE voted to reduce rates. Financial services were down another 3.1% Friday.



The Thursday decision took the British central bank’s key interest rate from 5.25% to 5%, following a narrow 5-4 vote among policymakers. Markets had not been fully convinced that the BOE would take the step.



BOE Governor Andrew Bailey told CNBC that the direction for interest rates was “pretty clear,” but he would not comment on the extent or timing of further cuts and said services inflation and wage data would be watched closely. Market pricing suggests expectations for a rate hold in September, followed by another rate trim in November.



U.S. stock markets tumbled on Thursday, as jitters grew around the state of the economy. Weekly initial jobless claims came in higher than expected, while manufacturing data slowed.



More information will be added to the U.S. economic picture on Friday, as the U.S. Bureau of Labor Statistics releases the nonfarm payrolls report, while Europe is quiet on the data front.



Asia-Pacific markets logged steep losses Friday, with Japan’s benchmark indexes tanking as much as 5%.



Cedric Chehab, global head of country risk at BMI, told CNBC’s “Street Signs Asia” that a U.S.-led sell-off started a week and a half ago but escalated in the middle of this week. That was due to factors including the hawkish Bank of Japan imploding the popular yen carry trade in the short term, weak U.S. data and volatility in earnings.



“But one thing people aren’t remembering is that usually between the period of July and October there is a seasonal rise in volatility for equity markets, so this isn’t completely unexpected,” Chehab said.



“Especially after the fact that there was such a large rally in U.S. stocks and global stocks, the fact that earnings came in a bit mixed and valuations are high, but also monetary policy remains very tight in real terms,” he added.

108013392-1722337017522-gettyimages-2021271708-20090101240221-99-73751

European markets lower amid global sell-off; technology, financial stocks tumble

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-scaled.jpg" alt="" class="wp-image-409717" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Kenyan shilling banknotes and coins sit arranged at a market stall in Mombasa, Kenya, on Thursday, Nov. 23, 2017. The countrys Treasury has already cut this years growth target to 5 percent from 5.9 percent as the protracted election furor damped investment and a drought curbed farm output. Photographer: Luis Tato/Bloomberg via Getty Images</figcaption></figure>



NAIROBI, Aug 2 (Reuters) &#8211; 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.



At 0805 GMT, commercial banks quoted the shilling at 129.50/130.50 to the U.S. dollar, compared with Thursday&#8217;s closing rate of 129.00/130.00.



S&amp;P Global is scheduled to review Kenya&#8217;s sovereign rating on Aug. 23.



It currently has the East African country&#8217;s long-term foreign and local currency ratings in &#8220;junk&#8221; status, at &#8216;B&#8217; with a negative outlook.



Last month Moody&#8217;s downgraded Kenya&#8217;s local- and foreign-currency long-term ratings deeper into junk, to &#8216;Caa1&#8217; from &#8216;B3&#8217;, citing a diminished capacity to implement fiscal consolidation after President William Ruto withdrew planned tax hikes in response to mass protests.



(Reporting by George Obulutsa; Editing by Alexander Winning)

General Economy As Kenya Faces Bleak 2018 Outlook In Vote Aftermath

Kenyan shilling slips on manufacturing FX demand; S&P review in focus

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1312" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/YHT7HH5IJBILVOWFFUVVW5TA3U-scaled.jpg" alt="" class="wp-image-514144" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/YHT7HH5IJBILVOWFFUVVW5TA3U-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/YHT7HH5IJBILVOWFFUVVW5TA3U-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/YHT7HH5IJBILVOWFFUVVW5TA3U-820x526.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/YHT7HH5IJBILVOWFFUVVW5TA3U-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/YHT7HH5IJBILVOWFFUVVW5TA3U-768x492.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/YHT7HH5IJBILVOWFFUVVW5TA3U-1536x984.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of Italian energy company Eni is seen at a gas station in Rome, Italy September 30, 2018. REUTERS/Alessandro Bianchi</figcaption></figure>



ABIDJAN, Aug 2 (Reuters) &#8211; Ivory Coast&#8217;s council of ministers on Thursday approved the signing of production-sharing agreements with Eni relating to four oil blocks.



Under the deal, a minimum of $80 million will be invested in blocks CI-504, CI-526, CI-706 and CI-708 over an initial three-year exploration period, the council said in a statement.



Eni did not immediately respond to a request for comment.



The world&#8217;s top cocoa-producing nation is hoping to become a major regional oil and gas producer and energy hub and expects oil output to more than triple by 2027, boosted by recent oil and gas discoveries.



Eni, whose presence in the African country dates back to the 1960s with its subsidiary Agip Côte d’Ivoire, started oil production last year at Ivory Coast&#8217;s Baleine field, which has estimated reserves of 2.5 billion barrels of oil and 3.3 trillion cubic feet of natural gas.



(Reporting by Ange Aboa; additional reporting by Sofia Christensen in Dakar; writing by Alessandra Prentice; editing by Jason Neely)

Ivory Coast approves oil production-sharing deals with Eni

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="563" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1824644004-820x563.jpg" alt="" class="wp-image-514141" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1824644004-820x563.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1824644004-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1824644004-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1824644004-768x527.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1824644004-1536x1054.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1824644004-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">DUBAI, UNITED ARAB EMIRATES &#8211; DECEMBER 01: Abiy Ahmed Ali, Prime Minister of Ethiopia, speaks during day one of the high-level segment of the UNFCCC COP28 Climate Conference at Expo City Dubai on December 1, 2023 in Dubai, United Arab Emirates. The COP28, which is running from November 30 through December 12, brings together stakeholders, including international heads of states and other leaders, scientists, environmentalists, indigenous peoples representatives, activists and others to discuss and agree on the implementation of global measures towards mitigating the effects of climate change.
 (Photo by Sean Gallup/Getty Images)</figcaption></figure>



ADDIS ABABA, Aug 2 (Reuters)&nbsp;&#8211;&nbsp;Ethiopian Prime Minister Abiy Ahmed has 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 birr currency.



The central bank allowed the birr to float freely on Monday, fulfilling a key condition to secure financial support from the International Monetary Fund and other creditors, and to put 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 to explain the 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.



Hours after floating the currency, Ethiopia got a new financing deal of $3.4 billion from the IMF, a move a senior finance ministry official said would make way for the completion of its debt restructuring in the next three to six months.



Soon after, the World Bank approved $1.5 billion in financing for its first ever budget support lending to Ethiopia. Abiy said the new financing would save $200 million from the restructuring of its $1 billion Eurobond.



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

COP28 UNFCCC Climate Conference: High-Level Segment Day One

Ethiopia’s PM defends currency float amid inflation concerns

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OJLUMYBPNBOPNBQH5SXGL2MYTE-scaled.jpg" alt="" class="wp-image-514137" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OJLUMYBPNBOPNBQH5SXGL2MYTE-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OJLUMYBPNBOPNBQH5SXGL2MYTE-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OJLUMYBPNBOPNBQH5SXGL2MYTE-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OJLUMYBPNBOPNBQH5SXGL2MYTE-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OJLUMYBPNBOPNBQH5SXGL2MYTE-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/OJLUMYBPNBOPNBQH5SXGL2MYTE-1536x1152.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Smoke rises from the burnt tires on a street, while demonstrators check the vehicles during an anti-government demonstration to protest against bad governance and economic hardship in Abuja, Nigeria August 1, 2024. REUTERS/Abraham Achirga</figcaption></figure>



ABUJA, Aug 2 (Reuters) &#8211; Nigerian police are on red alert and may seek the help of the military after protests against the cost of living and governance issues turned violent in some cities, the inspector general of police said.



At least three protesters were killed in northern Kaduna state on Thursday, Reuters reporters and protesters said.



Amnesty International said on Friday at least 13 protesters in total had been killed in three northern states, but the authorities have not commented on any deaths.



Some major cities, including the capital Abuja and Kano in the north appeared calm on Friday, a day after police and demonstrators clashed there, but further protests are expected amid widespread anger over President Bola Tinubu&#8217;s economic reforms that have increased hardship for ordinary Nigerians.



The inspector general of police, Kayode Egbetokun, said late on Thursday that police were fully mobilised and ready to respond swiftly to any further threats to public order.



&#8220;In the light of the current situation, the Nigeria Police Force has placed all units on red alert,&#8221; Egbetokun said in a statement.



&#8220;The police are equipped to respond appropriately to the unfolding situation and will get assistance from other security agencies, including the military if the need arises.&#8221;



Inspired by youth-led protests in Kenya, Nigerians have organised the &#8220;#EndBadGovernanceInNigeria&#8221; protests online, saying they would sustain their action for 10 days.



Amnesty International said security forces were responsible for the deaths of the 13 people in Niger state, Maiduguri, which is the capital of Borno state, and Kaduna, all in the north.



&#8220;Our findings, so far, show that security personnel at the locations where lives were lost deliberately used tactics designed to kill while dealing with gatherings of people protesting hunger and deep poverty,&#8221; it said.



A Nigerian police spokesperson did not immediately respond to requests for comment.



Kaduna state police spokesperson Mansur Hassan said on Thursday that the police had fired tear gas at protesters but had not used live ammunition.



Kano, a largely Muslim state and among the most populous in Nigeria,&nbsp;relaxed a 24-hour curfew imposed&nbsp;after protesters looted a shop and a government complex, while three other states also imposed curfews in some areas.



President Tinubu says that while he understands the pain caused by his reforms, which have fuelled inflation and weakened the currency, they are the only way to put Nigeria on a firm path to economic growth.



(Reporting by Abraham Achirga in Abuja, Hamza Ibrahim in Kano, Ahmed Kingimi in Maiduguri and Seun Sanni in Lagos, Writing by MacDonald DzirutweEditing by Chijioke Ohuocha, Giles Elgood and Gareth Jones)

Nigerians begin protests against economic hardship

Nigerian police may seek army help after violent protests

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1367" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-scaled.jpg" alt="" class="wp-image-505639" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-1536x1025.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><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 2 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was stronger in early trade on Friday, helped by signs of improvement in the domestic economy and dollar weakness on global markets.



The rand traded at 18.2275 against the dollar at 0635 GMT, up about 0.3% from Thursday&#8217;s close.



The dollar was down about 0.1% against a basket of currencies after an unexpected slump in U.S. manufacturing raised fears of an economic downturn.



South African data on Thursday showed electricity generation increased 5.4% year on year in June. A purchasing managers&#8217; index survey for the manufacturing sector, meanwhile, showed a sharp rebound in July.



&#8220;Structural improvements in the South African economy should continue to support the rand,&#8221; Commerzbank analyst Volkmar Baur said in a research note.



Later on Friday South Africa&#8217;s government will auction 1 billion rand ($54.9 million) of inflation-linked bonds.



($1 = 18.2188 rand)



(Reporting by Alexander Winning; Editing by David Goodman)

South African Rand Rebound Snaps Streak of Weekly Losses

South African rand gains on domestic economy while dollar dips

<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 2 (Reuters)&nbsp;&#8211;&nbsp;The following political and economic events, and equity and currency market moves may affect South African markets on Friday.



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



African National Congress National Executive Committee meets



Inflation-linked bond auction



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



South Africa&#8217;s rand firmed on Thursday as investors bet on a September interest rate cut in the world&#8217;s biggest economy after dovish comments by the U.S. Federal Reserve on Wednesday.



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



Asian shares were headed for their worst day in over two years and U.S. Treasury yields slid, while the Swiss franc and yen rose on safety bids on Friday after weaker-than-expected U.S. factory data sparked fears of a worsening economic outlook.



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



U.S. stocks kicked off August sharply lower after a round of economic data on Thursday spurred concerns the economy may be slowing faster than anticipated while the Federal Reserve maintains a restrictive monetary policy.



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



Gold prices firmed on Friday and were poised for a weekly gain, steered by safe-haven demand and the prospect of a September rate cut by the Federal Reserve, while market participants awaited U.S. payrolls data. 



&#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; Lift in manufacturing bodes well for third-quarter economic performance



&#8211; Post-election cheer helps lift vehicle sales in July



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



&#8211; Treasury punishes Eskom with 4 bln rand for poor behaviour



(Compiled by Alexander Winning)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Aug 2

<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 2 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Friday.



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



Asian shares and U.S. Treasury yields slid while the Swiss franc and yen rose on safety bids on Friday after weaker-than-expected U.S. factory data sparked fears of a worsening economic outlook.



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



Oil prices rose on Friday but were set for a fourth successive weekly decline, as signs of disappointing global fuel demand growth outweighed fears of supply disruptions.



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



South Africa&#8217;s rand firmed on Thursday as investors bet on a September interest rate cut in the world&#8217;s biggest economy after dovish comments by the U.S. Federal Reserve on Wednesday.



<h2 class="wp-block-heading" id="h-africa-currencies">AFRICA CURRENCIES</h2>



Kenya&#8217;s shilling is expected to be stable in the next week to Thursday, while Ghana&#8217;s cedi and Uganda&#8217;s shilling could weaken and Zambia&#8217;s kwacha could gain, traders said.



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



African Development Bank has approved a loan of $500 million for Nigeria to boost its electricity sector, the bank said on Thursday.



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



At least three protesters were killed in Nigeria&#8217;s Kaduna state on Thursday, Reuters reporters and eyewitnesses said, as demonstrators rallied across the West African nation against rising cost of living and governance issues.



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



The Kenyan shilling dipped against the US dollar on Thursday, according to data from the London Stock Exchange Group (LSEG).



<h2 class="wp-block-heading" id="h-tanzania-railway">TANZANIA RAILWAY</h2>



Tanzania on Thursday launched a 541-km modern standard gauge railway running between its administrative and commercial capitals, built by a Turkish firm as part of a government drive to improve transport infrastructure.



<h2 class="wp-block-heading" id="h-ethiopia-economy">ETHIOPIA ECONOMY</h2>



At least two Ethiopian local governments have ordered the closure of dozens of businesses found hiking prices of basic commodities after the central bank floated the national currency, officials said on Thursday.



<h2 class="wp-block-heading" id="h-togo-politics">TOGO POLITICS</h2>



Togo&#8217;s President Faure Gnassingbe has retained Victoire Sidemeho Tomegah-Dogbe as prime minister and a government will be formed in the coming days in line with a new constitution, the presidency said on Thursday.



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



Zambia&#8217;s state-owned power utility ZESCO has agreed to buy 218 megawatts (MW) of electricity from South Africa and Zimbabwe to cushion a shortfall caused by reduced hydropower capacity, its energy minister said on Thursday.



<h2 class="wp-block-heading" id="h-botswana-diamonds">BOTSWANA DIAMONDS</h2>



Sales of rough diamonds at Debswana Diamond Company fell 49.2% in the first half of 2024, according to data released by the Botswana central bank late on Wednesday, as the downturn in the global diamond market continued.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Aug 2

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="613" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VJ5LH6KF2BI2ZGLLQJNNERNKRQ-820x613.jpg" alt="" class="wp-image-514113" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VJ5LH6KF2BI2ZGLLQJNNERNKRQ-820x613.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VJ5LH6KF2BI2ZGLLQJNNERNKRQ-300x224.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VJ5LH6KF2BI2ZGLLQJNNERNKRQ-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VJ5LH6KF2BI2ZGLLQJNNERNKRQ-768x575.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VJ5LH6KF2BI2ZGLLQJNNERNKRQ-1536x1149.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VJ5LH6KF2BI2ZGLLQJNNERNKRQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Paris 2024 Olympics &#8211; Boxing &#8211; Women&#8217;s 66kg &#8211; Prelims &#8211; Round of 16 &#8211; North Paris Arena, Villepinte, France &#8211; August 01, 2024. Imane Khelif of Algeria is seen after her fight against Angela Carini of Italy. REUTERS/Isabel Infantes</figcaption></figure>



PARIS, Aug 1 (Reuters) &#8211; The International Olympic Committee on Thursday defended its decision to allow two female boxers to compete at the Paris Olympics despite a gender row, saying the pair were facing &#8220;aggression&#8221; because of an arbitrary decision.



Algerian Imane Khelif, who won her round of 16 welterweight bout over Italian Angela Carini in 46 seconds, and Taiwan&#8217;s double world champion Lin Yu-ting, who is fighting on Friday, have been cleared to compete in the Olympics.



Khelif&#8217;s lightning-quick win over the Italian, who decided to pull out after a barrage of punches by the Algerian, piled more pressure on the IOC for allowing them to box in Paris.



Both fighters had been disqualified at the 2023 World Championships after failing International Boxing Association eligibility rules that prevent athletes with male XY chromosomes competing in women&#8217;s events.



But the IBA was stripped of its recognition by the IOC last year over governance and finance issues, with the Olympic body running the boxing competition in Paris.



The IOC said the IBA decision to disqualify the boxers last year was arbitrary and the main cause for the furore that has seen people like British author J. K. Rowling and billionaire Elon Musk voice their opposition to them competing in the Games.



&#8220;These two athletes were the victims of a sudden and arbitrary decision by the IBA,&#8221; the IOC said in a statement. &#8220;Towards the end of the IBA World Championships in 2023, they were suddenly disqualified without any due process.



&#8220;According to the IBA minutes available on their website, this decision was initially taken solely by the IBA Secretary General and CEO.&#8221;



Some sports have limited the levels of testosterone allowed for athletes competing in women&#8217;s competition, while others ban everyone who has been through male puberty.



Differences of Sexual Disorder are a group of rare conditions involving genes, hormones and reproductive organs. Some people with DSDs are raised as female but have XY sex chromosomes and blood testosterone levels in the male range.



The IOC said the rules of eligibility were based on those of the Tokyo Games in 2021 and cannot be changed during a competition.



&#8220;The current aggression against these two athletes is based entirely on this arbitrary decision, which was taken without any proper procedure – especially considering that these athletes had been competing in top-level competition for many years,&#8221; the IOC said.



&#8220;The IOC is saddened by the abuse that the two athletes are currently receiving,&#8221; it added. &#8220;Every person has the right to practice sport without discrimination.&#8221;



In a statement, the IBA condemned &#8220;inconsistencies in eligibility&#8221; at the Paris Games.



&#8220;Both Imane Khelif and Lin Yu-ting post testing, did not meet the required eligibility criteria to compete within the female category of our respective events,&#8221; the body added.



&#8220;The urgent nature of the decision (to disqualify the boxers) was justified, as the safety of our boxers is our top priority.&#8221;



(Reporting by Karolos Grohmann; Additional reporting by Aadi Nair; Editing by Ken Ferris)

Boxing – Women’s 66kg – Prelims – Round of 16

Olympics-IOC saddened by ‘aggression’ against boxers over gender row

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107433735-1719423521960-gettyimages-2159383303-jr029067_kd08rrou-820x462.jpeg" alt="" class="wp-image-514095" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107433735-1719423521960-gettyimages-2159383303-jr029067_kd08rrou-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107433735-1719423521960-gettyimages-2159383303-jr029067_kd08rrou-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107433735-1719423521960-gettyimages-2159383303-jr029067_kd08rrou-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107433735-1719423521960-gettyimages-2159383303-jr029067_kd08rrou-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107433735-1719423521960-gettyimages-2159383303-jr029067_kd08rrou.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People line up as they wait for the JobNewsUSA.com South Florida Job Fair to open at the Amerant Bank Arena on June 26, 2024, in Sunrise, Florida.  Joe Raedle | Getty Images</figcaption></figure>



The U.S. labor market may have cooled some in July, as a gradual slowdown in the economy and Hurricane Beryl are expected to have taken some of the steam out of hiring.



Still, even if the Labor Department’s nonfarm payrolls report for July, to be released Friday at 8:30 a.m. ET, does indicate a weaker jobs picture, the decline is expected to be only incremental and in keeping with the type of gentle downshift the Federal Reserve is looking to engineer.



“If the Fed was going to manufacture the soft landing, this is probably what it was going to look like,” said Mike Reynolds, vice president of investment strategy at Glenmede. “You’re seeing just modest on-the-margin weakness in the labor market that [isn’t likely to] spiral out of control into a negative feedback loop.”



Indeed, the report from the department’s Bureau of Labor Statistics is forecast to show payroll gains of 185,000 on the month, down from 206,000 in June, with the unemployment rate holding at 4.1%, according to the Dow Jones consensus estimate. Job reports for the past year and a half have routinely beaten the consensus.



But some economists think the report could be on the light side; Goldman Sachs expects Beryl, which ravaged large parts of Texas, particularly Houston, to pull down the jobs number by 15,000. The firm thinks the total payroll gain will be more like 165,000. Citigroup projects an even lower number — 150,000 on payrolls and a tick higher in the unemployment rate to 4.2%.



Should the unemployment rate keep climbing, it could raise fears that the so-called Sahm Rule is in danger of being triggered. The rule has observed without fail that when the unemployment rate over a three-month period averages half a percentage point higher than the 12-month low, the economy is in recession. A year ago, the jobless level as at 3.5% before it started climbing.



<h2 class="wp-block-heading" id="h-optimism-at-the-fed">Optimism at the Fed</h2>



Job gains have averaged 203,000 a month for the first half of 2024, while the unemployment rate has drifted higher as more workers have come into the labor force and the level of those considered unemployed but looking for work or temporarily laid off has hit its highest level since October 2021.



Fed Chair Jerome Powell on Wednesday noted that the previous disparity between supply and demand in the labor market has come into near-balance. Open jobs now outnumber available workers just 1.2 to 1, down from 2 to 1 a few years ago as inflation roared.



Should the factors continue to come into balance and other inflation indicators show progress, Powell strongly hinted that an interest rate cut could be coming in September.



“Our confidence is growing, because we’re getting good data,” he said at a news conference following the Fed’s policy meeting. “Frankly, the softening in the labor market conditions gives you more confidence that the economy’s not overheating.”



Markets will be watching Friday’s numbers for confirmation that Powell’s view on the labor market is accurate — and that the Fed isn’t overconfident and waiting too long to start lowering rates.



There has been a growing chorus on Wall Street for the Fed to start easing now that most indicators show that the inflation rate is only a short distance from the central bank’s 2% goal. DoubleLine CEO Jeffrey Gundlach, for instance, told CNBC on Wednesday that he thinks the economy already is teetering on recession.



“When we look back at today, …. I kind of believe that we will say that we were in recession in September 2024,” he said.



<h2 class="wp-block-heading"><a></a>Eyes on earnings</h2>



The Fed at its meeting voted to hold its benchmark overnight borrowing rate in a range of 5.25%-5.5%, where it has been for the past year.



Markets rallied on the news but gave back those gains Thursday following news that unemployment claims rose last week and the manufacturing sector slumped further into contraction.



“By holding off on cutting interest rates today, the Federal Open Market Committee is betting the labor market is strong enough to wait until the fall for confirmation that inflation is returning to 2%,” said Nick Bunker, Indeed Hiring Lab’s economic research director for North America. “Let’s hope it pays off.”



As always, markets also will have eyes on the average hourly earnings portion of the report for signs of underlying inflation.



The forecast is that earnings rose 0.3% on the month and 3.7% from year ago. If the latter is correct, it will represent the lowest earnings increase since May 2021.



“Even if wage pressures were to unexpectedly remain ‘stuck’ or slightly re-accelerate in this report, we think that the progress the Fed has made on inflation thus far means that there should still be an opportunity for the Fed to cut rates in September so long as subsequent data releases (eg July CPI) cooperates,” said BeiChen Lin, investment strategist at Russell Investments.

107433735-1719423521960-gettyimages-2159383303-jr029067_kd08rrou

Here’s everything you need to know about Friday’s big jobs report

Putin’s Trader — How Rich Russian Hackers Stole Millions from U.S. Investors | CNBC Documentary

<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/GettyImages-2153943784-820x547.jpg" alt="" class="wp-image-513850" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2153943784-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2153943784-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2153943784-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2153943784-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2153943784-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-2153943784-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">LOS ANGELES, CA &#8211; MAY 24: Turkish Airlines Boeing 777-300ER arrives at Los Angeles International Airport during Memorial Day weekend on May 24, 2024 in Los Angeles, California. (Photo by AaronP/Bauer-Griffin/GC Images)</figcaption></figure>



BAMAKO, Aug 1 (Reuters)&nbsp;&#8211;&nbsp;Mali will set up a state-owned airline to service the vast, landlocked West African country more than a decade after the closure of the last national airline, the government announced on Wednesday night.



The new airline, Mali Airlines-SA, will service regional capitals, the military-led government said in a statement, but provided few other details.



Mali, which covers a swathe of the Sahel five times the size of Britain, shares 7,420 kilometres (4,610 miles) of border with seven countries, according to the statement.



Road travel can be dangerous in Mali, which has been struggling to contain a separatist rebellion and insurgencies by jihadist groups linked to al Qaeda and Islamic State that began more than a decade ago and have since spread into neighbouring Burkina Faso and Niger, as well as coastal countries.



Ethnic Tuareg rebels and Islamist fighters have killed a large number of Malian soldiers and their Russian allies in recent days.



The Council of Ministers adopted draft texts concerning the creation and approval of the airline during their weekly meeting on Wednesday.



In July, Mali said it was unable to refuel commercial aircraft in its capital Bamako due to fuel shortages and asked airlines to refuel elsewhere for a one-week period.



Airlines including Turkish Airlines and Ethiopian Airlines currently service Bamako.



(Reporting by Fadimata Kontao and Tiemoko Diallo; Writing by Portia Crowe; Editing by Alex Richardson)

Los Angeles Exteriors And Landmarks – 2024

Mali to set up state-owned airline

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1344" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-scaled.jpg" alt="" class="wp-image-513847" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2ULCJYYHB5OH5O2DRQ44X3IBDI-1-820x538.jpg 820w, 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" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><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 1 (Reuters)&nbsp;&#8211;&nbsp;At least two Ethiopian local governments have ordered the closure of dozens of businesses found hiking prices of basic commodities after the central bank floated the national currency, officials said on Thursday.



The Ethiopian birr weakened by 28% against the dollar this week after the central bank adopted a market-determined foreign exchange rate to secure a new International Monetary Fund lending programme and to put debt restructuring back on track.



&#8220;The businesses were caught making unreasonable price increases mostly on food items &#8230; The stocks were imported before the new exchange rate,&#8221; said Sewnet Ayele, a spokesperson for the Addis Ababa City Trade Bureau.



Some 71 businesses have been affected by the closure order, Sewnet said. In Oromiya region, another 19 businesses were closed and three people detained, said Meseret Assefa, head of the Trade Bureau of Oromiya.



&#8220;Those whose business are closed were the ones who increased prices on items just immediately after the (exchange rate) announcement,&#8221; Meseret said.



The main commodity whose price has gone up is cooking oil, which is selling at 25%, or 300 birrs, more, said a trader in Addis Ababa, who did not wish to be named.



Other commodities whose prices have gone up by a smaller margin include rice, said the trader.



Although the removal of foreign exchange trading restrictions helped Ethiopia to clinch the IMF deal and funding from other creditors like the World Bank, some Ethiopian analysts fear it will cause price hikes that hit the poor hardest.



The government and its development partners 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 Duncan Miriri; Editing by Giles Elgood)

Ethiopian local authorities crack down on price hikes after currency float

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="960" height="608" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MK64OLDHRZI2LCLTTB33FOO77I.jpg" alt="" class="wp-image-422324" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MK64OLDHRZI2LCLTTB33FOO77I.jpg 960w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MK64OLDHRZI2LCLTTB33FOO77I-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MK64OLDHRZI2LCLTTB33FOO77I-820x519.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MK64OLDHRZI2LCLTTB33FOO77I-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MK64OLDHRZI2LCLTTB33FOO77I-768x486.jpg 768w" sizes="auto, (max-width: 960px) 100vw, 960px" /><figcaption class="wp-element-caption"> Locals walk past electricity pylons during frequent power outages from South African utility Eskom, caused by its aging coal-fired plants, in Orlando, Soweto, South Africa, September 28, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



LUSAKA, Aug 1 (Reuters)&nbsp;&#8211;&nbsp;Zambia&#8217;s state-owned power utility ZESCO has agreed to buy 218 megawatts (MW) of electricity from South Africa and Zimbabwe to cushion a shortfall caused by reduced hydropower capacity, its energy minister said on Thursday.



Zambia has a deficit of more than 1,000 MW which is expected worsen as water levels at the key Kariba hydropower plant recede due to lower rainfall and drier conditions. Hydropower generates over 75% of Zambia&#8217;s installed capacity of 3,777 MW.



Energy Minister Makozo Chikote said the coal-fired Maamba Energy would also shut down for routine maintenance from the end of August into September, taking out a further 135 MW of power generation in Africa&#8217;s second-largest copper producer.



&#8220;ZESCO has negotiated the procurement of 218 MW of power from Eskom, South Africa and Zimbabwe Power Company (ZPC) to cushion the anticipated deficit,&#8221; Chikote said.



The electricity from the two neighbouring power utilities was expected to supply Zambia&#8217;s national grid this month, he said in a statement.



(Reporting by Chris Mfula; Editing by Wendell Roelf and Bernadette Baum)

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