<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/ONNVXT2PNJOPTD2RGQADDQM6PQ-820x547.jpg" alt="" class="wp-image-523490" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ONNVXT2PNJOPTD2RGQADDQM6PQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ONNVXT2PNJOPTD2RGQADDQM6PQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ONNVXT2PNJOPTD2RGQADDQM6PQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ONNVXT2PNJOPTD2RGQADDQM6PQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ONNVXT2PNJOPTD2RGQADDQM6PQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ONNVXT2PNJOPTD2RGQADDQM6PQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Presidential candidate from the ruling New Patriotic Party (NPP) and Ghana&#8217;s Vice President, Dr. Mahamudu Bawumia, delivers a speech next to a poster with his picture, during his campaign launch event ahead of the 2024 presidential election in Accra, Ghana, February 7, 2024. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, Aug 26 (Reuters)&nbsp;&#8211;&nbsp;The two main contenders in Ghana&#8217;s presidential election have launched duelling manifestos promising fiscal stability, jobs and a path out of the country&#8217;s worst economic downturn in a generation.



Voters will head to the polls on Dec. 7 to elect a successor to President Nana Akufo-Addo, who is stepping down at the end of the two terms he is allowed to serve as head of the West African gold, oil and cocoa-producing nation.



The election will pit ex-president John Dramani Mahama of the main opposition National Democratic Congress party against Vice President Mahamudu Bawumia, an economist and former central banker, from Akufo-Addo&#8217;s ruling New Patriotic Party.



No party has ever won more than two consecutive terms in government in Ghana&#8217;s democratic history.



Frustrations about economic hardship have tainted Akufo-Addo&#8217;s presidency. Ghana defaulted on most of its $30 billion external debt in 2022 &#8211; the culmination of years of overstretched borrowing compounded by the COVID pandemic, the knock-on impacts of the war in Ukraine and a rise in global interest rates.



The government sought help from the International Monetary Fund and is now restructuring its debt as a condition for a $3 billion support package.



Both Mahama and Bawumia laid out their policy promises over the weekend ahead of a vote analysts predict to be tight two-man contest, even though others are running.



Mahama, 65, vowed to scrap first-year university fees to boost tertiary education and reduce taxes during his first three months in office.



&#8220;I will lead a ruthless war against corruption&#8221; and recover misappropriated assets, he told supporters in the south central city of Winneba on Saturday.



Mahama invested heavily in infrastructure during his 2013-17 presidency but drew criticism over power shortages, economic instability and alleged state corruption. He was never directly accused of wrongdoing but oversaw the government that was. His government denied wrongdoing.



NPP critics say graft continued and grew worse under Akufo-Addo&#8217;s administration. His administration has also denied wrongdoing.



Bawumia promised to simplify the tax system, almost halve the number of ministers and cut public spending by 3% of GDP.



Addressing reporters in the capital Accra on Sunday, he outlined a plan to provide digital training to one million young people to help them find jobs.



Both candidates are from northern Ghana, a long-standing NDC stronghold in which the NPP has made inroads over the past years.



(Reporting by Maxwell Akalaare Adombila; Editing by Sofia Christensen, Portia Crowe and Alison Williams)

ONNVXT2PNJOPTD2RGQADDQM6PQ

Ghana presidential contenders promise to ease hardship as campaign ramps up

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg" alt="" class="wp-image-422955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, Aug 26 (Reuters) &#8211; The Ugandan shilling  was marginally firmer against the U.S. dollar on Monday, with some end-month inflows of hard currency from non-governmental organisations helping lend support to the local currency, traders said.



At 0920 GMT commercial banks quoted the shilling at 3,707/3,717, a notch firmer than Friday&#8217;s close of 3,710/3,720.



(Reporting by Elias Biryabarema; Editing by)

GettyImages-924883576-1

Ugandan shilling firms slightly on aid agency inflows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-820x547.jpg" alt="" class="wp-image-381494" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-1110x740.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-696x464.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-1068x712.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/Kenya-Shilling-banknotes-and-coins-1920x1280.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><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 countrys Treasury has already cut this years 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</figcaption></figure>



NAIROBI, Aug 26 (Reuters) &#8211; The Kenyan shilling was stable on Monday, with traders saying market activity was muted despite S&amp;P Global downgrading the country&#8217;s sovereign credit rating late on Friday.



At 0813 GMT, LSEG data showed the shilling at 128.50/129.50 to the U.S. dollar, the same level it closed on Friday.



The shilling has traded relatively evenly in recent weeks, shrugging off major protests that started in June and forced the government to abandon tax hikes contained in the government&#8217;s annual finance bill.



S&amp;P downgraded Kenya&#8217;s rating deeper into &#8220;junk&#8221; territory, to &#8216;B-&#8216; from &#8216;B,&#8217; citing the repeal of the latest year&#8217;s finance bill, which it said will slow fiscal consolidation.



&#8220;The market&#8217;s dead. Everyone is just holding off. Nobody is keen on buying, they&#8217;re just covering some small positions,&#8221; one trader said.



(Reporting by Hereward Holland; Editing by Alexander Winning)

General Economy As Kenya Faces Bleak 2018 Outlook In Vote Aftermath

Kenyan shilling steady in muted trade; no reaction to S&P downgrade

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A collection of mixed denomination South African rand coins sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. South Africas inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Aug 26 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand weakened early on Monday, ahead of a slew of local economic data releases this week, which could give hints on the health of the local economy.



At 0732 GMT, the rand traded at 17.80 against the dollar, 0.51% weaker than its previous close.



The rand, like most emerging market currencies, benefited from a softer dollar on Friday after comments from Federal Reserve Chair Jerome Powell solidified bets of a September rate cut.



South African investors will focus on monthly producer inflation, money supply, budget and trade balance data due later this week.



On the stock market, the Top-40 index was little changed in early trade.



South Africa&#8217;s benchmark 2030 government bond was weaker in early deals, with the yield up 2.5 basis points to 9.095%.



(Reporting by Bhargav Acharya; Editing by Kirsten Donovan)

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

South African rand slips at start of data-filled week

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<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-501467" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Aug 26 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, company announcement, equity and currency market moves may affect South African markets on Monday.



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



Foreigners&#8217; trading in South African bonds and equities



South African weekly T-bill auction



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



South Africa&#8217;s state utility Eskom to brief media on summer outlook



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



The South African rand jumped on Friday, after comments by Federal Reserve Chair Jerome Powell signalled an interest rate cut next month.



On the Johannesburg Stock exchange, the blue-chip Top-40 index closed up 0.73%.



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



Major share markets turned hesitant in Asia on Monday, while the dollar and bond yields were on the wane ahead of inflation data that investors hope will pave the way for rate cuts in the United States and Europe.



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



U.S. stocks rallied on Friday as dovish remarks from U.S. Federal Reserve Chair Jerome Powell solidified expectations that the central bank will cut its key policy rate in September.



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



Gold prices held ground on Monday, buoyed by a weaker dollar and Treasury yields after U.S. Federal Reserve Chair Jerome Powell&#8217;s dovish remarks cemented expectations for a September rate cut.



&#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; Steinhoff 2.0 takes Reserve Bank to court



&#8211; Transnet asks Eskom for secret of its turnaround



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



&#8211; Turkcell vs MTN: Billion-dollar lawsuit over Iranian licence heads to appeals court



(Compiled by Bhargav Acharya)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Aug 26

<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 26 (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>



Asian shares crept cautiously higher on Monday, while the dollar and bond yields were on the wane ahead of inflation data that investors hope will pave the way for rate cuts in the United States and Europe.



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



Oil prices extended gains on Monday on fears a major spillover in fighting from the Gaza conflict into the Middle East could disrupt regional oil supplies, while imminent U.S. interest rate cuts lifted the global economic and fuel demand outlook.



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



The South African rand jumped on Friday, after comments by Federal Reserve Chair Jerome Powell signaled an interest rate cut next month.



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



Kenya&#8217;s shilling was stable against the U.S. dollar on Friday, as the dollar was hit by a lull in demand, traders said.



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



Global credit ratings agency S&amp;P downgraded Kenya&#8217;s rating on Friday to &#8220;B-&#8221; from &#8220;B,&#8221; citing the recent repeal of the East African country&#8217;s 2024/2025 Finance Bill, which it said will slow its fiscal consolidation.



<h2 class="wp-block-heading" id="h-shipping-red-sea">SHIPPING RED SEA</h2>



Three fires blazed on a Greek-flagged oil tanker in the Red Sea, the United Kingdom Maritime Trade Operations said on Friday, one day after rescuers evacuated its crew in the wake of an assault by Yemeni Houthi militants.



<h2 class="wp-block-heading" id="h-ghana-cocoa">GHANA COCOA</h2>



Ghana&#8217;s cocoa marketing board, Cocobod, is fine-tuning a new funding model for bean purchases that will require global traders to deposit at least 60% of the value of their forward contracts at the start of the season, two sources told Reuters.



<h2 class="wp-block-heading" id="h-mali-security">MALI SECURITY</h2>



At least 21 people, including 11 children, were killed by drone strikes on Sunday on the town of Tinzaouaten in north Mali, near where the army suffered a heavy blow last month, Tuareg rebels said.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Aug 26

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108025237-1724641337856-gettyimages-2167483575-AFP_36EN9KK-820x462.jpeg" alt="" class="wp-image-523407" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108025237-1724641337856-gettyimages-2167483575-AFP_36EN9KK-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108025237-1724641337856-gettyimages-2167483575-AFP_36EN9KK-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108025237-1724641337856-gettyimages-2167483575-AFP_36EN9KK-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108025237-1724641337856-gettyimages-2167483575-AFP_36EN9KK-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108025237-1724641337856-gettyimages-2167483575-AFP_36EN9KK.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">This photo taken from a position in northern Israel shows a Hezbollah UAV intercepted by Israeli air forces over north Israel on August 25, 2024. The Israeli military announced early August 25, 2024 that it was conducting pre-emptive strikes in Lebanon after detecting preparations for “large-scale” attacks by the Iran-backed militant group Hezbollah. Hezbollah said it had launched more than 320 rockets at Israel overnight, targeting a string of military positions, even as Israel’s military said it was carrying out pre-emptive strikes against the group.  Jalaa Marey | Afp | Getty Images</figcaption></figure>



Tensions in the Middle East and the risk of a wider conflict will keep oil prices elevated, said Vivek Dhar, mining and energy commodities strategist at the Commonwealth Bank of Australia.



Oil prices rose on Monday after Israel’s Air Force struck targets in Lebanon with over 100 fighter jets before the Iran-backed group fired more than 320 rockets into Israel.



U.S. West Texas Intermediate crude was up 0.75% at $75.39 a barrel, while Brent crude rose 0.67% to $79.55.



Iran-backed Hezbollah said the strikes were in retaliation to Israel’s killing of senior commander Fuad Shukr in Beirut last month. Israel said its pre-emptive strikes were aimed at foiling a bigger attack by the Hezbollah, Reuters reported.



“While market expectations are centered on Iran’s attack hurting Israel without triggering a wider regional conflict, Israel’s response will be equally important. And Israel’s response may include an attack on Iran’s oil supply and related infrastructure, which would put at risk 3 &#8211; 4% of global oil supply,” Dhar said.



Cedric Chehab, managing director and head of global risk at research firm BMI said the exchange of fire on Sunday does not mean that an “all-out war” is imminent.



Speaking to CNBC’s “Squawk Box Asia,” Chehab said that “what Hezbollah wanted to do, what Iran wanted to do, was to essentially allow for deterrence. So, [to] exercise that deterrence, and they’ve done that.”



While there is a risk that the confrontation spirals out into a wider conflict, there is still room for de-escalation, he added.



Both Israel and Iranian leaders “do not want this to get out of hand and to escalate &#8230; don’t forget, Iran has a new president who’s untested, and the idea is to apply pressure on Israel, but not necessarily engage in direct confrontation.”



While Dhar agreed with Chehab’s view that the events on Sunday are unlikely to be the catalyst for an all-out war in the region, he pointed out Iran has yet to retaliate against Israel following the assassination of Ismail Haniyeh, the political chief of Hamas, in Tehran last month.



Dhar also said the progress of Gaza truce talks will be an indicator of how Iran, Hezbollah, and Hamas interpret the events over the weekend.



Early Monday, Reuters reported that there was no agreement over ceasefire in talks on Sunday regarding the Gaza conflict, with Egyptian security sources telling the agency that neither Hamas nor Israel agreed to proposals presented by mediators in Cairo.



Dhar added while the escalation hurts truce talks at face value, the fact that Israel managed to thwart Hezbollah “may force Iran and its proxies to concede that Israel is in a position of power, particularly with U.S. backing, making the truce talks more palatable.”



He also forecasts that Brent futures will trade between $75 and $85 a barrel in September, with more potential upside if hopes for a truce in Gaza diminish, and as an Iranian reprisal against Israel is still “on the cards.”



“More broadly, the risk of a wider conflict in the Middle East that permanently embroils Iran is an upside risk to our outlook.”

108025237-1724641337856-gettyimages-2167483575-AFP_36EN9KK

Oil prices to remain elevated as Middle East tensions threaten a wider conflict, CBA analyst warns

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<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-scaled.jpeg" alt="" class="wp-image-419969" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-scaled.jpeg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-1536x1024.jpeg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, July 27, 2022.
Elizabeth Frantz | Reuters</figcaption></figure>



Federal Reserve Chair Jerome Powell laid the groundwork Friday for interest rate cuts ahead, though he declined to provide exact indications on timing or extent.



“The time has come for policy to adjust,” the central bank leader said in his much-awaited keynote address at the Fed’s annual retreat in Jackson Hole, Wyoming. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”



Watch live: Fed Chair Jerome Powell speaks from Jackson Hole conference



With markets awaiting direction on where monetary policy is headed, Powell focused as much on a look back at what caused the inflation that led to an aggressive series of 13 rate hikes from March 2022 through July 2023.



However, he did note the progress on inflation and said the Fed can now turn its focus equally to other side of its dual mandate, namely to make sure the economy stays around full employment.



“Inflation has declined significantly. The labor market is no longer overheated, and conditions are now less tight than those that prevailed before the pandemic,” Powell said. “Supply constraints have normalized. And the balance of the risks to our two mandates has changed.”



He vowed that “we will do everything we can” to make sure the labor market says strong and progress on inflation continues.



Stocks added to gains as Powell began to speak while Treasury yields dropped sharply.



“This was a valedictory of essentially Chair Powell turning the page, saying the mission, which has been focused on inflation for the last two years, has been successful,” economist Paul McCulley, the former Pimco managing director, said on CNBC’s “Squawk on the Street.”



<h2 class="wp-block-heading" id="h-sees-progress-towards-goals"><a></a>Sees progress towards goals</h2>



The speech comes with the inflation rate consistently drifting back to the Fed’s 2% target though still not there yet. A gauge the Fed prefers to measure inflation most recently showed the rate at 2.5%, down from 3.2% a year ago and well off its peak above 7% in June 2022.



At the same time, the unemployment rate has slowly but consistently climbed higher, most recently at 4.3% and in an area that otherwise would trigger a time-tested indicator of a recession. However, Powell attributed the rise in unemployment to more individuals entering the workforce and a slower pace of hiring, rather than a rise in layoffs or a general deterioration in the labor market.



“Our objective has been to restore price stability while maintaining a strong labor market, avoiding the sharp increases in unemployment that characterized earlier disinflationary episodes when inflation expectations were less well anchored,” he said. “While the task is not complete, we have made a good deal of progress toward that outcome.”



Markets are expecting the Fed to start cutting in September, though Powell made no mention of when he thinks policy easing will begin. Minutes from the July open market committee meeting, released Wednesday, noted that a “vast majority” of officials believe a September cut will be appropriate so long as there are no data surprises.



In addition to assessing the current state of play, Powell took considerable time in the speech to evaluate what led to the surge in inflation — hitting its highest level in more than 40 years — as well as the Fed’s policy response and why price pressures have eased without a recession.



<h2 class="wp-block-heading" id="h-good-ship-transitory"><a></a>‘Good ship Transitory’</h2>



When inflation first began to rise in early 2021, he and his colleagues — as well as many Wall Street economists — dismissed it as “transitory” and caused by Covid-related factors that would abate.



“The good ship Transitory was a crowded one,” Powell quipped to laughter form attendees, “with most mainstream analysts and advanced-economy central bankers on board. I think I see some former shipmates out there today.”



When it became clear that inflation was spreading from goods to services, the Fed pivoted and began hiking, ultimately adding 5.25 percentage points to its benchmark overnight rate that had been around zero following emergency cuts in the early pandemic days.



The rise in inflation, Powell said, was “a global phenomenon,” the result of “rapid increases in the demand for goods, strained supply chains, tight labor markets, and sharp hikes in commodity prices.”



He attributed confidence in the Fed and well-anchored expectations that inflation ultimately would ease to the economy avoiding a sharp downturn during the hiking cycle.



“The FOMC did not flinch from carrying out our responsibilities, and our actions forcefully demonstrated our commitment to restoring price stability,” he said. “An important takeaway from recent experience is that anchored inflation expectations, reinforced by vigorous central bank actions, can facilitate disinflation without the need for slack.”



Powell added that there is still “much to be learned” from the experience.



“That is my assessment of events. Your mileage may differ,” he said.

107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed

Fed Chair Powell indicates interest rate cuts ahead: ‘The time has come for policy to adjust’

How Google Makes Custom Cloud Chips That Power Apple AI And Gemini

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="520" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/R7UP5L23DNJNVCR6AXA2NM23QI.jpg" alt="" class="wp-image-522413" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/R7UP5L23DNJNVCR6AXA2NM23QI.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/R7UP5L23DNJNVCR6AXA2NM23QI-300x195.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/R7UP5L23DNJNVCR6AXA2NM23QI-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/R7UP5L23DNJNVCR6AXA2NM23QI-768x499.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: Dr. Pascaline Kahindo, checks the treatment progress on the feet of patient Ajuamungu Ntuyehe, undergoing the treatment of Mpox &#8211; an infectious disease caused by the monkeypox virus that sparks off a painful rash, enlarged lymph nodes and fever; at the treatment centre in Munigi, following Mpox cases in Nyiragongo territory near Goma, North Kivu province, Democratic Republic of the Congo July 19, 2024. REUTERS/Arlette Bashizi/File Photo</figcaption></figure>



BERLIN/BRUSSELS, Aug 23 (Reuters)&nbsp;&#8211;&nbsp;The German government is examining whether any available national mpox vaccine doses could be donated, the health ministry said in a status report for August that was seen by Reuters on Friday.



The ministry said it has given its remaining stock of the Jynneos vaccine to the defence ministry and the German army.



The federal government has around 117,000 doses of Jynneos, which is being stockpiled by the German army, after Berlin procured it in 2022, a ministry spokesperson said this week.



International aid measures, such as donations from the European Commission, are underway, though details need to be clarified both in Europe and locally, the ministry added.



The European Union has urged its members to coordinate their donations of mpox vaccines to African countries, rather than do this individually. The European Commission has a joint procurement contract with vaccine maker Bavarian Nordic&nbsp;BAVA.CO, to buy vaccines for donations.



&#8220;European donations will have more immediate impact if they are coordinated,&#8221; EU Health Commissioner Stella Kyriakides said in a letter dated Aug. 22 that was addressed to the health ministers of EU countries.



Germany so far has no reported cases of the clade 1 strain of mpox that has triggered global concern due to the ease with which it spreads though routine close contact, it said.



The ministry added that the government was closely monitoring the situation but it did not see an increased risk from clade 1 in Germany, which it assumes could also be contained effectively with the currently available mpox vaccines.



(Reporting by Christian Kraemer and Kate Abnett; Writing by Miranda Murray; Editing by Andrey Sychev and Shounak Dasgupta)

Children at risk as mpox variant hits Congo displacement camps

Germany examining whether any available mpox vaccines could be donated

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-820x549.jpg" alt="" class="wp-image-425202" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-1536x1028.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African Rand coins are seen in this photo illustration . REUTERS/Mike Hutchings</figcaption></figure>



JOHANNESBURG, Aug 23 (Reuters)&nbsp;&#8211;&nbsp;The South African rand strengthened in early trade on Friday, as traders awaited a speech by U.S. Federal Reserve Chair Jerome Powell that may give hints about the future interest rate path of the world&#8217;s biggest economy.



At 0751 GMT, the rand traded at 17.98 against the dollar, about 0.3% firmer than its previous close.



Powell is due to speak later on Friday at an annual meeting of global central bakers in Jackson Hole, Wyoming, and markets are looking out for clues on whether U.S. interest rate cuts will start in September.



&#8220;The nature of these speeches is normally that not too much will be revealed, but nevertheless, the market will go over the speech with a fine tooth comb,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



&#8220;Should any new information be forthcoming, expect the market to be volatile around the speech,&#8221; Cilliers added.



Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. monetary policy in the absence of major local factors.



On the Johannesburg Stock exchange, the blue-chip Top-40 index was up about 0.4% in early trade.



South Africa&#8217;s benchmark 2030 government bond was slightly stronger in early deals, with the yield down 1.5 basis points to 9.195%.



(Reporting by Tannur Anders; Editing by Helen Popper)

South African Rand coins are seen in this photo illustration

South African rand firms as traders wait for Powell speech

<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/PFS-820x547.jpg" alt="" class="wp-image-522347" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/PFS-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/PFS-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/PFS-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/PFS-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/PFS-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/PFS.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo by Mark Stebnicki</figcaption></figure>



From millet, teff and sorghum to cassava, cowpea and sweetpotato, Africa is home to a diverse range of nutritional, hardy and versatile crops with the potential to be used to make everything from baby food to bread and even beer.



Yet, the ability to fully take advantage of indigenous and locally adapted crops to meet growing demand for convenient and long-lasting products is held back by the continent’s underdeveloped food processing sector.&nbsp;



This reality confronted me during a visit to a rural village in Zambia where I stumbled across a shelf stacked with Chinese-produced biscuits. Traveling tens of thousands of miles to arrive in this remote farming community, this humble packet of biscuits is emblematic of a continent that remains overly reliant on costly food imports.&nbsp;



As the new CEO of Partners in Food Solutions (<a href="https://www.partnersinfoodsolutions.com/" target="_blank" rel="noreferrer noopener">PFS),</a>&nbsp;a nonprofit that works to support Africa’s growing food processing sector with the skills and expertise it needs, I believe unlocking this potential can release vital economic benefits, a wider range of nutritious foods and a reduced reliance on food imports.&nbsp;



Africa’s population is growing and urbanizing at the same time that the devastating impacts of climate change are disrupting food security and livelihoods. This means the demands on Africa’s food systems to provide sufficient food and jobs while catering to changing food preferences are steadily increasing.&nbsp;



However, Africa’s food processing sector is still lagging behind. This is fuelling an already high reliance on food importation and in the process, forgoing much-needed economic benefits such as job creation, upskilling and market growth.



Currently, Africa spends upwards of&nbsp;<a href="https://www.bloomberg.com/news/articles/2023-01-24/africa-needs-up-to-65-billion-loans-yearly-to-curb-food-imports" target="_blank" rel="noreferrer noopener">$60 billion</a>&nbsp;a year on food imports. This money could otherwise be invested in boosting domestic production at a time when the continent’s food systems are facing mounting pressures. Access to expertise, increased investments and crop diversification are key to facilitating the transition to more local food processing across Africa.



We can achieve this by first ensuring access to the right support for food processing companies. The chance to use and learn from world-leading expertise can support sustainable food systems while helping businesses and entrepreneurs grow.&nbsp;



For example, when Zambian food processing company COMACO was struggling to achieve 80 per cent extraction of grade A polished rice from paddy rice, PFS connected them to an expert rice milling volunteer from Swiss-owned multinational Bühler, who helped the company troubleshoot the issue and identify solutions.&nbsp;



This kind of technical support can help food processing companies in Africa attain international food safety and quality certifications, increase their processing capacities, extend the shelf life of their products and more. It also creates a ripple effect that benefits smallholder farmers by creating greater demand for raw ingredients.&nbsp;



Secondly, we can drive economic development by investing in the necessary infrastructure for a thriving food processing sector. This includes equipment and machinery as well as training and market access.



Africa is home to the world’s youngest population and by 2035, will have the world’s largest workforce, yet there are&nbsp;<a href="https://ilostat.ilo.org/blog/african-youth-face-pressing-challenges-in-the-transition-from-school-to-work/" target="_blank" rel="noreferrer noopener">not enough</a>&nbsp;jobs available and many young people are turning away from agricultural careers. An innovative and profitable food processing sector can provide an appealing option for the continent’s growing youth population.&nbsp;



Lastly, the diverse crops available across Africa can meet the demands of an urbanizing population with changing food preferences.&nbsp;



Africa spends significantly on imports such as grains, often used for flour to meet demands for food products such as bread. In 2021,&nbsp;<a href="https://www.agflow.com/agricultural-markets-news/uganda-wheat-import-market-of-100-million/" target="_blank" rel="noreferrer noopener">Uganda</a>&nbsp;imported nearly $100 million worth of wheat, for example.&nbsp;



Rather than imported foods or crops, the continent’s food processors can instead be supported to leverage traditional African crops. Cereals such as sorghum and millet are nutritious and suited for processing into healthy and easily accessible food products to address Africa’s nutritional challenges.



Additionally, these crops are more resilient to droughts and extreme weather events, which have become more frequent across the continent. Leveraging international partnerships through initiatives such as the&nbsp;<a href="https://www.state.gov/the-vision-for-adapted-crops-and-soils/" target="_blank" rel="noreferrer noopener">US State Department’s Vision for Adapted Crops and Soils (VACS)</a>&nbsp;can help achieve crop diversification goals. VACS aims to build a resilient food system grounded in diverse, nutritious, and climate-adapted crops such as sorghum, millet, Bambara groundnut and yams.&nbsp;



Facing the dual challenge of a rapidly growing population amid escalating climate change, Africa’s historic reliance on food imports must be reduced. Supporting a homegrown food processing industry would not only unlock economic growth but also empower farmers and provide a food secure and resilient future for millions of young Africans.&nbsp;



To fully benefit from these opportunities, more investment and recognition of the food processing gap in Africa’s existing food system is urgently needed. Governments and businesses in the agrifood sector must champion collaboration to accelerate food systems transformation in Africa.

Africa’s food processing sector holds the key to a food-secure and prosperous continent

<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>



Aug 23 (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-events">EVENTS:</h2>



S&amp;P is scheduled to issue a reassessment of Kenya&#8217;s &#8216;B&#8217; credit rating, after deadly protests against tax hikes in June forced the government to abandon its funding plan for this fiscal year.



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



Asian shares sputtered on Friday while the dollar rebounded from one-year lows as investors were cautious ahead of a speech by the world&#8217;s most powerful central banker with markets looking for confirmation U.S. rate cuts would start in September.



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



Oil prices were little changed on Friday, on track to end the week lower, as downward revisions to U.S. employment data raised concerns over demand and renewed ceasefire talks in Gaza eased worries about supply disruptions.



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



The South African rand slipped against a stronger dollar on Thursday as investors awaited Federal Reserve Chair Jerome Powell&#8217;s speech for hints on the future interest rate path of the world&#8217;s biggest economy.



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



The Kenyan and Ugandan shillings are expected to strengthen against the dollar in the coming week to Thursday, while Zambia&#8217;s kwacha and Ghana&#8217;s cedi are seen weakening and Nigeria&#8217;s naira as holding steady, traders said.



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



Kenya&#8217;s shilling held steady against the U.S. dollar on Thursday, as foreign currency inflows matched demand from manufacturing and other sectors, traders said.



<h2 class="wp-block-heading" id="h-africa-climate-finance">AFRICA CLIMATE FINANCE</h2>



African countries want to use this year&#8217;s U.N. COP meetings to secure a much bigger share of global climate financing, their representatives said at a meeting in Kenya on Thursday, to help deal with the increased threats from climate change.



<h2 class="wp-block-heading" id="h-sudan-politics">SUDAN POLITICS</h2>



A fraction of available aid has passed through the Adre border crossing from Chad into Sudan&#8217;s hunger-ravaged Darfur region this week following a move by the Sudanese army to temporarily lift a ban on deliveries.



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



Canada&#8217;s Lucara Diamond Corp, has discovered a 2,492 carat diamond at its Karowe mine in Botswana, the company said late Wednesday, one of the largest stones to be excavated.



((Compiled by Nairobi Newsroom))

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Ghana presidential contenders promise to ease hardship as campaign ramps up

Ugandan shilling firms slightly on aid agency inflows

Kenyan shilling steady in muted trade; no reaction to S&P downgrade

South African rand slips at start of data-filled week

Hidden gems to check out in Peckham

South African Markets – Factors to watch on Aug 26

African Markets – Factors to watch on Aug 26

Oil prices to remain elevated as Middle East tensions threaten a wider conflict, CBA analyst warns

Why The U.S. Can’t Build Homes Fast Enough

Shein vs. Temu: Fast fashion wars

China showcases humanoid robots at World Robot Conference

Fed Chair Powell indicates interest rate cuts ahead: ‘The time has come for policy to adjust’

How Google Makes Custom Cloud Chips That Power Apple AI And Gemini

Germany examining whether any available mpox vaccines could be donated

South African rand firms as traders wait for Powell speech

Africa’s food processing sector holds the key to a food-secure and prosperous continent

African Markets – Factors to watch on Aug 23

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