<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1600" height="900" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/106079953-1565841404120gettyimages-1161631096.jpeg" alt="" class="wp-image-521928" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/106079953-1565841404120gettyimages-1161631096.jpeg 1600w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/106079953-1565841404120gettyimages-1161631096-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/106079953-1565841404120gettyimages-1161631096-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/106079953-1565841404120gettyimages-1161631096-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/106079953-1565841404120gettyimages-1161631096-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/106079953-1565841404120gettyimages-1161631096-1536x864.jpeg 1536w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



The U.S. 10-year Treasury rose on Thursday as dovish minutes from the latest Federal Reserve meeting and a large revision lower in preliminary payrolls data bolstered expectations of an interest rate cut next month.



The yield on the 10-year Treasury was up more than 2 basis points at 3.799%, while the yield on the 2-year Treasury was roughly 1 basis point higher at 3.929%.



Yields and prices move in opposite directions. One basis point equals 0.01%.



Market participants are firmly pricing in an interest rate cut at the U.S. central bank’s next meeting. Traders are currently pricing in a roughly 66% chance of a 25-basis-point rate cut in September, with just over one-third pricing in a 50-basis-point rate cut, according to the CME Group’s FedWatch Tool.



It comes shortly after the summary of minutes from the Fed’s July meeting said that the “vast majority” of participants “observed that, if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting.”



Investors on Wednesday also reacted to a significant downward revision to U.S. hiring figures, which showed there were 818,000 fewer jobs than originally reported in the 12-month period through March 2024.



Attention now turns to comments made at the annual Jackson Hole symposium that kicks off on Thursday. Federal Reserve Chair Jerome Powell is scheduled to speak on Friday.



On the data front, the latest reading of weekly initial jobless claims will be released at around 8:30 a.m. ET on Thursday.



A flash reading of manufacturing purchasing managers’ index (PMI) for August and services PMI for August, existing home sales data for July and the Kansas City Fed’s survey for August will all follow slightly later in the session.



— CNBC’s Alex Haring, Sophie Kiderlin &amp; Jesse Pound contributed to this report.

106079953-1565841404120gettyimages-1161631096

Treasury yields rally as Federal Reserve signals readiness for September rate cut

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="565" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-820x565.jpg" alt="" class="wp-image-521910" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-820x565.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-768x529.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-1536x1058.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/APQE2ALP6RL6DHFPPT6WZO3ITU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Samburu pastoralist slaughter livestock in the de-stocking of emaciated animals in a program by the government and the Kenya Red Cross to buy livestock, slaughter and distribute the meat as relief food to the most affected families following a prolonged drought near Lengusaka in Wamba, Samburu county, Kenya July 27, 2022. REUTERS/Thomas Mukoya</figcaption></figure>



KILIFI COUNTY, Kenya, Aug 22 (Thomson Reuters Foundation)&nbsp;&#8211;&nbsp;When farmer Teresa Kahindi harvested nearly two tonnes of maize two years ago amid a severe drought, her neighbours in the Kenyan coastal county of Kilifi accused her of witchcraft.



Many of her fellow farmers had not produced even a single sack, weighing about 90 kg, of the staple, during the fifth consecutive season of almost no rain in eastern Kenya, where arid conditions can devastate harvests.



&#8220;They said I was a witch,&#8221; said Kahindi, 53, while strolling through her fields of black-eyed peas, mung beans, cassava, finger millet and sunflowers.&#8221;But it&#8217;s not true. We can&#8217;t farm like we used to do. Now we must rely on climate forecasts.&#8221;



Kahindi&#8217;s drought-defying harvest was thanks to a sophisticated early-warning system that includes cutting-edge meteorological data, radio and text alerts and on-the-ground teams that ensure communities can take pre-emptive action to avoid crop losses.



In March 2022, a month before the rainy season was due to begin, Kahindi was advised to adapt her plans at a seminar for farmers run by county officials.



She prepared her plots with manure to enhance water retention, covered the soil with dry grass mulching to reduce evaporation and planted drought-tolerant maize seeds, which require less water and mature faster than other varieties.



&#8220;Knowledge can transform farming,&#8221; says Kahindi.



Kenya&#8217;s early warning system, funded by the government and a patchwork of international agencies, may offer a template for countries to meet the United Nation&#8217;s 2022 goal to protect &#8220;all people on Earth&#8221; by 2027 through early warning systems.



The U.N. launched the Early Warnings for All Action Plan for Africa in Kenya&#8217;s capital of Nairobi last year in an effort to accelerate a slow rollout in other parts of the continent.



&#8220;In terms of early warning, Kenya stands out as a big brother for East Africa,&#8221; said Zablon Shilenje, the World Meteorological Organization&#8217;s coordinator for Africa.



<h2 class="wp-block-heading" id="h-reducing-famine-risk">REDUCING FAMINE RISK</h2>



As extreme weather events increase due to manmade climate change, the Kenyan model allows farmers to switch agricultural techniques or the crops they cultivate to adapt to predicted conditions, such as intense droughts or heavy floods.



Between 2020 and 2022, the Horn of Africa suffered its worst drought in at least 70 years, exacerbated by the climate phenomenon La Niña. Some 23 million people required humanitarian aid at a cost of more than $1.8 billion.



More people will be exposed to drought as the region&#8217;s population is set to double to 400 million by 2055.



Food security experts say Kenya&#8217;s early warning system has mitigated the impact of disasters – in turn minimising the likelihood of famine in one of the world&#8217;s most food insecure regions.



Between 2010 and 2011, when repeated droughts struck the East African nation, 2.8 million Kenyans were left &#8220;severely hungry.&#8221;



Thanks to early warnings, a million fewer people suffered during similar droughts in 2016 and 2017, even as the U.S. government halved its spending on food aid, according to a report by the U.S. Agency for International Development, or USAID.



The effort to predict droughts dates back to 1985 with the founding of the Famine Early Warning Systems Network (FEWS NET), a USAID-funded programme that began in the aftermath of a catastrophic Ethiopia famine but now covers more than 50 countries.



Supported by Kenya&#8217;s National Drought Management Authority (NDMA) and Agriculture Ministry, as well as international NGOs, the system uses high-resolution satellite, crop and other climate data to predict the risk of drought, sometimes up to eight months in advance.



Local authorities interpret, verify and communicate forecasts to millions of farmers through radio, television, SMS and WhatsApp messages and sometimes provide them with subsidised fertilisers and seeds.



&#8220;We are able to foresee severe events in a timely manner,&#8221; said David Gikungu, director of the Kenya Meteorological Department.



<h2 class="wp-block-heading" id="h-come-a-long-way">&#8216;COME A LONG WAY&#8217;</h2>



Advances in data collection, modelling and satellite monitoring have helped make early warning more reliable over the years, said Chris Funk, director of the Climate Hazards Center at UC Santa Barbara, which processes most of FEWS NET&#8217;s data.



Other improvements include an understanding of the complex climatic conditions that drive drought in the Horn of Africa and the region&#8217;s communications infrastructure.



&#8220;We&#8217;ve really come a long way,&#8221; Funk said. &#8220;We have an impressive suite of tools now. It&#8217;s been successful in stopping people from starving.&#8221;



A study of FEWS NET data by U.S. researchers found 92 percent of early warnings in Kenya were accurate, aided by better monitoring of socioeconomic factors, such as food prices and violent conflict.



While Kenya&#8217;s early warning system is now highly accurate at predicting natural disasters, critics say decisionmakers don&#8217;t always act on time or with enough financial support.



&#8220;Unless the government and other stakeholders put up the resources, then it can&#8217;t work,&#8221; said James Odour, NDMA&#8217;s director from 2012 to 2022.



&#8220;Unless action is taken on the early warning, then it&#8217;s pointless.&#8221;



Nelson Mutanda, responsible for early warning systems at the NDMA, said the government instructed counties to allocate 2% of their annual budgets to early warning and gave local authorities the responsibility of managing funds.



&#8220;Counties have enough budget (to fund early warnings),&#8221; he said. &#8220;But some don&#8217;t prioritise it. They can&#8217;t come crying to us for support just because they haven&#8217;t properly prepared.&#8221;



He added: &#8220;And we expect farmers who are capable should take initiative without waiting for funding.&#8221;



<h2 class="wp-block-heading" id="h-last-mile">&#8216;LAST MILE&#8217;</h2>



Research suggests pre-emptive intervention can save billions of dollars. A 2022 report by the World Bank found that spending $1 billion on early warnings can avert $35 billion of disaster-related losses annually.



Another major challenge is disseminating warnings to rural populations.



In Kenya&#8217;s southern county of Kajiado, home to the pastoralist Indigenous Maasai, drought warnings may not be understood, due to illiteracy rates, or sometimes are not even delivered when there are gaps in government or humanitarian resources.



&#8220;I need help, I would accept training,&#8221; said Ole Mwato, a 46-year-old Maasai who lost 20 cows and 80 goats in the 2020-2022 droughts.



&#8220;It&#8217;s a lot of pain to lose the animals. There was no grass, no water. That&#8217;s why they died.&#8221;



Others are resistant to undertaking laborious tasks, such as digging pits to retain water, seeing it as a potential waste of time because past forecasts were unreliable or traditional cultural beliefs that say the rains are controlled by the gods.



To improve forecast accuracy, 50 low-cost, 3D-printed automatic weather stations, capable of sending highly accurate meteorological data every 15 minutes, are being installed by FEWS NET across Kenya, including three in Kilifi.



For now, Kahindi is leading by example, encouraging local farmers to adapt their methods to future weather in order to maximise yields.



&#8220;We must work together to beat famine,&#8221; she said.



(Reporting by Peter Yeung; Editing by Ayla Jean Yackley. The Thomson Reuters Foundation is the charitable arm of Thomson Reuters.)

In northern Kenya, drought may keep some herders from voting in Samburu

In Kenya, drought-weary farmers reap rewards of early warnings

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2M7MCF2JIZO4NFMGJBAKSQL3JI-820x547.jpg" alt="" class="wp-image-521660" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2M7MCF2JIZO4NFMGJBAKSQL3JI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2M7MCF2JIZO4NFMGJBAKSQL3JI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2M7MCF2JIZO4NFMGJBAKSQL3JI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2M7MCF2JIZO4NFMGJBAKSQL3JI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2M7MCF2JIZO4NFMGJBAKSQL3JI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/2M7MCF2JIZO4NFMGJBAKSQL3JI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Customers wait to be served in the banking hall at the Kenya Commercial Bank (KCB), Kencom branch in Nairobi, Kenya July 10, 2018. Picture taken July 10, 2018. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Aug 21 (Reuters)&nbsp;&#8211;&nbsp;Kenyan&nbsp;lender&nbsp;KCB Group&#8217;sKCB.NR&nbsp;pretax profit for the first half of this year rose 70% to 38.11 billion shillings ($297 million), up from 22.46 billion shillings in the same period in 2023, it said on Wednesday.



The company said its board of directors had recommended an interim dividend payout amounting to 4.8 billion shillings, the biggest interim dividend in its history.



The group also operates in Democratic Republic of Congo, Tanzania, Rwanda, South Sudan, Uganda and Burundi.



The group&#8217;s net interest income grew 35% year on year, supported by improved yields and increased lending, KCB said in a statement.



&#8220;We delivered a commendable first half of the year, despite strong headwinds in the operating environment, especially in Kenya,&#8221; KCB Group Chief Executive Paul Russo said.



($1 = 128.5000 Kenyan shillings)



(Reporting by Hereward Holland and Duncan Miriri; Editing by Alexander Winning)

FILE PHOTO: Customers wait to be served in the banking hall at the Kenya Commercial Bank, Kencom branch in Nairobi

Kenyan lender KCB Group reports 70% higher profit in H1

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="929" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020956-1723732033233-gettyimages-2163386402-941_04_bsip_016707_024-1.jpeg" alt="" class="wp-image-521657" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020956-1723732033233-gettyimages-2163386402-941_04_bsip_016707_024-1.jpeg 929w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020956-1723732033233-gettyimages-2163386402-941_04_bsip_016707_024-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020956-1723732033233-gettyimages-2163386402-941_04_bsip_016707_024-1-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020956-1723732033233-gettyimages-2163386402-941_04_bsip_016707_024-1-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108020956-1723732033233-gettyimages-2163386402-941_04_bsip_016707_024-1-768x432.jpeg 768w" sizes="auto, (max-width: 929px) 100vw, 929px" /><figcaption class="wp-element-caption">Colorized transmission electron micrograph of mpox virus particles (red) found within an infected cell (blue), cultured in the laboratory. Bsip | Universal Images Group | Getty Images</figcaption></figure>



An escalating mpox outbreak is causing alarm among some health experts, who warn that the latest strain of the virus could be more fast-spreading and deadly than an early 2022 outbreak.



The World Health Organization last week declared mpox a global public health emergency following the spread of an outbreak in the Democratic Republic of Congo (DRC) to neighboring countries.



Since the new outbreak, cases have been identified in countries where mpox is not endemic, such as Sweden, Pakistan and Thailand — although its unclear which strain has been unidentified in some of these nations.



Mpox is a viral infection which spreads through close contact and causes flu-like symptoms and lesions filled with pus. While usually mild, it can be fatal.



The WHO’s director for Europe, Dr. Hans Kluge, said Tuesday that the outbreak is “not the new Covid” and that it can be stopped with international cooperation.



But health experts have warned of the “many unknowns” surrounding the latest outbreak — and in particular a new subvariant — which could make it harder to contain.



“Clade 1b has recently emerged and there are many unknowns that need to be addressed,” said Trudie Lang, professor of global health research and director of The Global Health Network at the University of Oxford.



“There is emerging evidence of differences in transmission and symptoms; such as more commonly passed person to person and from mothers to their babies in pregnancy,” she said.



There are broadly two types of of mpox, known as clades, with the latest outbreak identified as clade 1. Compared with the 2022 strain, clade 2, the current strain, appears to spread more easily and has a higher fatality rate.



A newly identified clade 1b subvariant has been found to be particularly prevalent among young people and appears to be spreading through sexual networks, Jonas Albarnaz, a research fellow specializing in poxviruses at The Pirbright Institute, said.



However, he noted more data is needed to understand its transmission dynamics and to “inform the control strategies.”



<h2 class="wp-block-heading" id="h-more-vulnerable-countries">More vulnerable countries</h2>



Clade 1 is already known for causing more severe disease in young children, pregnant women and immunocompromised people. That has hastened the outbreak in countries where certain health conditions are more prevalent and those with poorer health-care systems.



“As mpox disease is more severe in immunocompromised individuals, it is also a concern that the current outbreak is taking place in a region where HIV prevalence is relatively high but access to antiretroviral drugs is poor,” said Brian Ferguson, associate professor of immunology at the University of Cambridge.



Ongoing conflicts in parts of Africa — such as the DRC, where a large number of displaced people have relocated to refugee camps — have also worsened sanitation conditions and accelerated the spread.



So far this year, more than 15,000 cases and at least 537 deaths have been reported from the outbreak in the DRC, according to the WHO, with more cases reported elsewhere.



Ferguson said that more cases are likely to be identified in the coming days and weeks given the lack of controls in place to prevent the spread from country to country. He also said that lessons had not been learned from the prior outbreak, which was declared a public health emergency in July 2022 before the designation was removed in May 2023.



“The lack of activity in the intervening period has resulted in what could now become a new global outbreak. There should have been a greater effort to produce and distribute vaccines to the affected areas, but this has not happened,” he said.



<h2 class="wp-block-heading" id="h-vaccines-for-younger-people"><a></a>Vaccines for younger people</h2>



Danish biotech firm Bavarian Nordic, one of the only companies with an approved mpox vaccine, said Tuesday that it would decide this week whether to ramp up production of its jab even before having orders lined up, according to Reuters.



That comes after the company on Friday submitted data to the European Union’s drug regulator to extend the use of its mpox vaccine for adolescents.



CEO Paul Chaplin told CNBC at the time that obtaining approval for 12- to 17-year-olds would be crucial in tackling the outbreak of the latest strain of the virus.



“More than 70% of the cases in Africa currently are in people younger than 18, so it’s going to be critical that our vaccine can be used in this younger age group,” he said.

108020956-1723732033233-gettyimages-2163386402-941_04_bsip_016707_024

Why the latest mpox outbreak is raising alarm among health experts

How A Weakening Dollar Can Help American Consumers

<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-1556188599-820x547.jpg" alt="" class="wp-image-521585" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The headquarters of the National Bank of Rwanda, Rwanda&#8217;s central bank, in the Nyarugenge district of Kigali, Rwanda on Thursday, July 20, 2023. The World Bank cut Rwanda&#8217;s GDP growth estimate to 5.8% from 6.2%, as it expected flooding during April and May to result in slowed economic expansion. Photographer: Bing Guan/Bloomberg via Getty Images</figcaption></figure>



KIGALI, Aug 21 (Reuters)&nbsp;&#8211;&nbsp;Rwanda&#8217;s central bank lowered its key interest rate by 50 basis points to 6.5% on Wednesday, its second cut in a row, saying inflation was projected to remain within its target band at around 5% on average.



The decision follows a 50 basis point cut to the National Bank of Rwanda&#8217;s Central Bank Rate in May.



Annual inflation peaked at 21.7% in November 2022 and has remained under 6% since the start of this year. It dipped to 4.9% in July, well within policymakers&#8217; 2%-8% target range.



&#8220;Inflation is expected to remain within our band and around our medium objective of 5% for this year 2024 and for next year 2025,&#8221; Governor John Rwangombwa told a news conference.



He added the bank&#8217;s monetary policy committee had the same inflation projections as at its May meeting.



On the economy, Rwangombwa said growth had been strong in the second quarter and was projected to remain so in the third quarter, building on the first quarter&#8217;s 9.7% growth.



Among inflation risks, Rwangombwa cited heightened geopolitical tensions affecting commodity prices and adverse weather conditions impacting food prices.



(Reporting by Philbert Girinema; Writing by Hereward Holland; Editing by Alexander Winning and Christina Fincher)

Rwandan Economy as World Bank Cuts Growth Estimate on Floods

Rwanda central bank lowers key rate for second meeting in a row

Africa is the world’s second most populated continent, accounting for just under 18% of the global population.&nbsp; Despite this, the continent is accountable for at least 25% of the world’s disease burden.



With more than its fair share of diseases, the World Economic Forum estimates that the total demand for packaged medicines in Africa is around $18 billion per year.&nbsp; Interestingly, 61% of that is serviced through imported products, with only 36% being locally produced. Of the 36%, 40% of the production capabilities are confined to packaging and labelling with the remaining 40% limited to filling and finishing (Who Owns Whom, 2023).



For Africa to effectively service the medical requirements of its 1.4 billion people, countries on the continent must acknowledge the need to enhance their pharmaceutical and medical production capabilities.&nbsp;



In recognition of this, the OR Tambo International Airport Special Economic Zone (SEZ) has designed, and is in the process of developing, a globally competitive medical manufacturing cluster that will enhance the production and export of medical products from South Africa.&nbsp;



<h2 class="wp-block-heading" id="h-or-tambo-sez-s-bold-ambitions">OR Tambo SEZ’s Bold Ambitions</h2>



Comprised of 265,000m² of developable space, the OR Tambo SEZ Precinct 2 development is well positioned to support the production and export of time-sensitive products such as medicines.



Located on the doorstep of OR Tambo International, the SEZ is an ideal location for the production and export of high-value, light weight products that utilize air freight as a mode of transport.



In support of its competitive value proposition, the OR Tambo SEZ completed industry-specific research that identified different elements essential for the establishment of a globally competitive medical manufacturing cluster.&nbsp; The result of this research is a bold plan that aims to secure continental as well as international buy-in, thereby ensuring that the cluster is well positioned to support the manufacturing of different elements that form part of the broader pharmaceutical and medical product value chain in Africa.



<h2 class="wp-block-heading" id="h-the-competitization-of-the-or-tambo-sez-pharma-and-medical-cluster">The Competitization of the OR Tambo SEZ Pharma and Medical Cluster</h2>



The cluster-based approach is globally acknowledged as an effective approach to enhance economic growth and development.



For it to be competitive, any cluster must pursue and ensure the existence of linkages between different elements that form part of the production process; these include basic inputs, manufacturers, role players that approve the products for consumption and those that move the goods to market. Equally important are the research, development and innovation institutions.



The OR Tambo SEZ’s planned pharma and medical manufacturing precinct will have all the above inclusive of a variety of medical production processes such as pharmaceutical mixing, medical device component manufacturing, sub-assembling, labelling and packaging, warehousing and storage, training, standard testing, patent compliance and regulatory approval institutions.&nbsp;



Through this approach, the SEZ, which already boasts of a competitive location, is destined to become a world class pharma and medical products manufacturing destination.&nbsp;



<h2 class="wp-block-heading" id="h-available-incentives">Available Incentives</h2>



As a designated Special Economic Zone, the OR Tambo SEZ will also provide manufacturers that are looking to set up operations with the opportunity to access incentives that reduce the cost of production; this is particularly key, given that manufacturing costs remain a major impediment in the enhancement of manufacturing in Africa.



Available incentives include duty-free importation of production-related materials and assets as well as VAT exemption on exports.&nbsp;



<h2 class="wp-block-heading" id="h-or-tambo-sez-the-competitive-choice">OR Tambo SEZ: The Competitive Choice</h2>



Underpinned by factors such as a skilled labor force, South Africa has long been a location of choice for multinationals looking at Africa. The country also has an established supply chain to foster the medical manufacturing expansion.



All the above, coupled with Gauteng City-Region’s competitive positioning serving as a gateway to sub-Saharan Africa, make the OR Tambo SEZ an ideal location for the production, export and trade of pharmaceutical and medical products within Africa.



For more information on the pharmaceutical and medical cluster being developed at OR Tambo International Airport SEZ, visit: <a href="http://www.ortambosez.co.za">www.ortambosez.co.za</a>

pexels-chokniti-khongchum-3938022

Establishing A Globally Competitive Pharma and Medical Manufacturing Cluster

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1396" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-scaled.jpg" alt="" class="wp-image-521563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-820x559.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KLE2XLZI7ZKB7JONPVNEGPZDU4-1536x1047.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">File photo: A shopper looks at items at a grocery store in Johannesburg, South Africa, June 8, 2017. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



JOHANNESBURG, Aug 21 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s inflation dropped more than&nbsp;forecastto a three-year low in July, nearing the level the central bank aims for and cementing analysts&#8217; expectations for an interest rate cut&nbsp;next month.



Consumer inflation fell to 4.6% year on year in July from 5.1% in June, statistics agency data showed on Wednesday, whereas analysts polled by Reuters had forecast annual inflation of 4.9% last month.



The South African Reserve Bank likes to see inflation around 4.5%, the midpoint of its 3% to 6% target range, but it has been above that level since mid-2021.



Before the latest inflation print, most economists in a Reuters poll had predicted the SARB would reduce its main interest rate by 25 basis points at its next policy announcement on Sept. 19, and a cut now looks more likely.



&#8220;The SARB has definitely run out of excuses to not cut interest rates&#8230; and might have to consider a bigger cut,&#8221; independent economist Elize Kruger said.



July&#8217;s data &#8220;seals the deal&#8221; on a September rate cut, said David Omojomolo, Africa economist at Capital Economics, adding he thought inflation could fall below 4% by the end of the year.



The central bank had said at its July meeting that it expected inflation to dip below 4.5% over the next few quarters, mainly due to falling food and fuel costs.



July&#8217;s data showed inflation for food and non-alcoholic beverages fell to 4.5% from 4.6% in June, while fuel decreased to 4.5% from 7.6% in June.



Core inflation, which excludes food and fuel, came in at 4.3% in July versus 4.5% in June, Statistics South Africa added.



(Reporting by Tannur Anders and Bhargav Acharya; Editing by Alexander Winning, Alison Williams and Toby Chopra)

A shopper looks at items at a grocery store in Johannesburg, South Africa

South Africa inflation drop makes September rate cut more likely

Pro video gaming: How eSports is taking off with big dollars behind it

<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 21 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was weaker in early trade on Wednesday, ahead of a local inflation print which could give hints on the future interest rate path of Africa&#8217;s most industrialised economy.



At 0642 GMT, the rand traded at 17.83 against the dollar, about 0.2% softer than Tuesday&#8217;s close.



&#8220;Today is all about local CPI (inflation) later this morning and the Fed (U.S. Federal Reserve) minutes this evening,&#8221; said Rand Merchant Bank analysts in a research note.



Investor focus will be on South Africa&#8217;s July inflation print  set to be released at 0800 GMT for clues on the country&#8217;s future interest-rate path.



Inflation in June was at 5.1% year on year and within the central bank&#8217;s target range of 3% to 6%. The central bank likes to see inflation close to 4.5%, the midpoint of its target range.



Economists polled by Reuters expect South Africa&#8217;s central bank to cut interest rates for the first time in more than two years on Sept. 19.



&#8220;Ahead of CPI later this morning, we look for some consolidation after the big moves of late,&#8221; Rand Merchant Bank analysts added, referring to the rand.



Global markets will look to minutes of the Fed&#8217;s latest meeting for clarity on the rate-cut path of the world&#8217;s biggest economy.



South Africa&#8217;s benchmark 2030 government bond was slightly weaker in early deals, as the yield gained 1 basis point to 9.295%.



(Reporting by Tannur Anders; Editing by Rashmi Aich)

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

South African rand softer ahead of local inflation print

<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 21 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Wednesday.



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



Zimbabwe&#8217;s finance minister, Mthuli Ncube, will speak about fiscal policy at a conference in Harare hosted by the Zimbabwe Economic Society.



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



Asian shares slipped on Wednesday as a stellar rebound in world stocks paused for breath, while bond yields and the dollar fell ahead of U.S. economic data and speeches from policymakers that are expected to make the case for interest rate cuts.



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



Oil prices slipped on Wednesday on estimates showing swelling U.S. crude inventories and expectations that tensions in the Middle East were easing following a tour of the region by mediators.



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



The South African rand weakened on Tuesday ahead of local inflation data, as markets awaited clues on both domestic and U.S. interest-rate paths this week.



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



Kenya&#8217;s shilling was little changed against the U.S. dollar on Tuesday in a quiet session, traders said.



<h2 class="wp-block-heading" id="h-mpox-africa">MPOX AFRICA</h2>



Justine Munguiko could not recall the name of the disease she had been warned about. She knew only that her baby Fidele had painful sores similar to those suffered by other children at the displacement camp near the eastern Congolese city of Goma.



<h2 class="wp-block-heading" id="h-kenya-tax">KENYA TAX</h2>



Kenya&#8217;s top court on Tuesday suspended a lower court&#8217;s ruling that the 2023 finance law was unconstitutional, saying it was important to preserve stability in the budget until the merits of the government&#8217;s appeal are heard next month.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Aug 21

<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 21 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, equity and currency market moves may affect South African markets on Wednesday.



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



Statistics South Africa will publish July consumer price inflation data.



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



The South African rand weakened on Tuesday ahead of local inflation data, as markets awaited clues on both domestic and U.S. interest-rate paths this week.



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



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



Asian shares slipped on Wednesday as a stellar rebound in world stocks paused for breath, while bond yields and the dollar fell ahead of U.S. economic data and speeches from policymakers that are expected to make the case for interest rate cuts. 



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



U.S. stocks closed slightly lower on Tuesday, breaking their recent winning streak amid few market-moving catalysts ahead of the Jackson Hole Economic Symposium, set to get under way on Thursday.



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



Gold prices were trading below record high levels on Wednesday after a rally fuelled by Western fund inflows and U.S. rate-cut optimism, as investors braced for minutes of the Federal Reserve&#8217;s latest meeting for clarity on the depth of cuts. 



&#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; Agricultural land at risk from property and mining, Steenhuisen says



&#8211; Court dismisses Nersa and Salga&#8217;s appeal for electricity hikes



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Aug 21

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="554" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/V5ONZXDNEFJHRJIKZYSNEMS244-820x554.jpg" alt="" class="wp-image-521524" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/V5ONZXDNEFJHRJIKZYSNEMS244-820x554.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/V5ONZXDNEFJHRJIKZYSNEMS244-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/V5ONZXDNEFJHRJIKZYSNEMS244-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/V5ONZXDNEFJHRJIKZYSNEMS244-768x519.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/V5ONZXDNEFJHRJIKZYSNEMS244-1536x1037.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/V5ONZXDNEFJHRJIKZYSNEMS244-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A logo of Sibanye Stillwater is seen at a mine in Marikana, outside Rustenburg, northwest of Johannesburg, South Africa, March 14, 2024. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



Aug 21 (Reuters) &#8211; South Africa&#8217;s Sibanye Stillwater has finalised a 1.8 billion rand ($101 million) gold prepayment deal to raise cash to help repay loans after a slump in platinum group metal (PGM) prices hurt its income, the diversified miner said on Wednesday.



The group had previously said it was seeking to raise more than $500 million through metals prepayment deals to shore up its balance sheet after earnings plunged due to the PGM price collapse.



Metals prepayment arrangements allow miners to sell their future production in return for an upfront cash payment.



The metals producer&#8217;s profits tumbled $2 billion last year due to lower prices and after it wrote down $2.6 billion in the carrying value of its U.S. palladium mines, a nickel operation in France and a gold mine in South Africa.



Sibanye Stillwater CEO Neal Froneman said in a statement on Wednesday the prepayment deal was a &#8220;proactive, strategic financing alternative that improves the group&#8217;s liquidity and balance sheet&#8221;.



Sibanye said it would deliver 1,497 kg of gold in equal monthly tranches from October 2024 to November 2026 in return for the prepaid cash. The cash will help to repay the group&#8217;s loans, it said.



The miner said it had also reached an agreement to refinance and increase its 5.5 billion rand revolving credit facility with South African lenders, which was due to mature in November 2024.



Refinancing allows a borrower to replace an existing debt obligation with a new one on more favourable terms.



The refinanced 6 billion rand facility will now mature in August 2027, with an option to extend it by a further two years, Sibanye said.



($1 = 17.8542 rand)



(Reporting by Nelson Banya; Editing by Emelia Sithole-Matarise)

A logo of Sibanye Stillwater is seen at a mine in Marikana

Sibanye finalises $101 mln gold prepayment deal, refinances credit facility

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108023023-1724177843627-Shein_Temu-820x462.jpg" alt="" class="wp-image-521505" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108023023-1724177843627-Shein_Temu-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108023023-1724177843627-Shein_Temu-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108023023-1724177843627-Shein_Temu-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108023023-1724177843627-Shein_Temu-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/108023023-1724177843627-Shein_Temu.jpg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Shein and Temu. Yuki Iwamura | Bloomberg | Stefani Reynolds | AFP | Getty Images</figcaption></figure>



Chinese-linked fast-fashion giant Shein is suing rival Temu, alleging the retailer stole its designs and built an empire using counterfeiting, intellectual property infringement and fraud. 



The suit, filed Monday in Washington, D.C., federal court, comes as Shein itself fends off similar allegations from a wide variety of brands and independent artists, including Levi Strauss and H&amp;M. 



In its complaint, Shein alleges that Temu, owned by PDD Holdings, is “masquerading” as a legitimate online marketplace because it encourages its sellers to steal other brands’ designs and then prevents them from removing products from the platform, even after they have admitted to infringement.



“Temu draws U.S. consumers into downloading and using its mobile application with promises of extremely low pricing. But Temu is not profiting from the sale of these products, which are priced so low that Temu must subsidize each sale, losing money on every transaction,” the complaint said.&nbsp;



“Only by encouraging its sellers to infringe the intellectual property rights of others and sell counterfeit or sub-standard goods can Temu hope to minimize the massive losses it is subsidizing,” the lawsuit added.



The dueling e-tailers have taken the retail industry by storm with their ultra low-priced products and their ability to respond to trends far faster than their legacy competitors. Along the way, the two have racked up a mountain of criticism related to their labor practices, their connections to the Chinese government and their alleged use of other brands’ designs. 



As the two jockey for market share, they have taken to the courts to accuse each other of a series of scandalous allegations. Last year, Temu sued Shein over copyright concerns and allegations that it uses “mafia-style intimidation of suppliers” to bully them into exclusivity agreements. 



In Shein’s complaint, the company accused Temu of “brazen” illicit behavior. It said at least one of Temu’s employees stole “valuable trade secrets” that identified best-selling Shein products, along with internal pricing information, to help it in its efforts to compete.&nbsp;



“Armed with this stolen information, Temu then directed its sellers to copy those and other best-selling Shein products and sell knock-off versions on Temu’s website and mobile application,” the complaint said.&nbsp;



“Temu is no garden-variety infringer,” the suit said. “In order to advertise the counterfeit versions of Shein products, Temu has reproduced virtually identical copyrighted images of Shein products and used them, or instructed sellers to use them, as promotional images on the Temu website and mobile application.”



The company goes as far as to say that Temu has falsely pretended to be Shein on social media site X in an effort to “misdirect customers away from the Shein platform to the Temu platform.”&nbsp;



The complaint includes a screenshot of a Temu-sponsored Google ad that shows Shein in the headline, but Temu as the web address.&nbsp;



“To further deceive consumers, Temu has instructed its paid social media influencers to falsely claim that Temu products which are often counterfeits of Shein products are cheaper and of higher quality than genuine Shein goods,” the complaint said. “Temu has gone to great lengths to imitate Shein, including by poaching resources, employees, and suppliers from Shein.”&nbsp;



Shein’s 80-page complaint includes more than a dozen examples of clothes and designs that Temu allegedly ripped off.&nbsp;



It has asked the court to rule in its favor and enter an order that would prohibit Temu from using Shein’s confidential information, among other requests.&nbsp;



Temu did not immediately respond to CNBC’s request for comment.

108023023-1724177843627-Shein_Temu

Shein sues Temu over copyright infringement, alleges rival loses money on every sale

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="576" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-820x576.jpg" alt="" class="wp-image-425778" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-820x576.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-768x540.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-1536x1079.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu waves to a crowd as he takes the traditional ride on top of a ceremonial vehicle, after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, Aug 20 (Reuters)&nbsp;&#8211;&nbsp;Nigeria is on track to meet a tax revenue target set by the Federal Inland Revenue Service and is pushing for a legislative overhaul to modernise tax collection, including regulating cryptocurrencies, the chief of the service said on Tuesday.



Zacch Adedeji said in a statement that a 19.4 trillion naira ($12.5 billion) revenue target set for 2024 is within reach.



&#8220;We are in the third quarter of the year and with the figures we are seeing so far, I can say we are on the path of achieving our target,&#8221; Adedeji said following talks with a joint committee of Nigeria&#8217;s National Assembly on Finance.



In office since May last year, Nigeria&#8217;s President Bola Tinubu has embarked on the country&#8217;s boldest reforms in decades, including the partial removal of costly petrol and electricity subsidies, and has proposed changes to the country&#8217;s tax system as part of a push to widen the tax base.



The West African country is also preparing an executive bill to overhaul revenue collection and introduce regulations for cryptocurrencies as it aims to simplify tax laws and harmonise collection, Adededi said.



The proposed legislation, if passed, could reshape Nigeria&#8217;s economic landscape, bringing its tax system in line with global standards and potentially boosting much-needed revenue from the rapidly growing cryptocurrency sector.



Adedeji said the proposal seeks to simplify tax laws, harmonise revenue collection and replace outdated tax laws with measures more closely fitting current economic conditions.



&#8220;We will bring a bill for a law to overhaul the whole process of revenue administration in Nigeria,&#8221; Adedeji said. &#8220;Part of what we intend to achieve with this is to harmonise revenue collection, making tax laws very simple to understand and to be in tune with our current realities.



&#8220;We cannot run away from the cryptocurrency ecosystem. As it stands in Nigeria today, there is no law that regulates cryptocurrency operations. We need a law that regulates that area of our economy.&#8221;



($1 = 1,550.0000 naira)



(Writing by Elisha Bala-Gbogbo; Editing by David Holmes)

FILE PHOTO: Nigeria’s President Bola Tinubu waves to a crowd as he takes the traditional ride on top of a ceremonial vehicle after his swearing-in ceremony in Abuja

Nigeria expects to meet $12.5 billion revenue target

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-820x547.jpg" alt="" class="wp-image-421165" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1243616593-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The locomotive of a Transnet SOC Ltd. freight train transports wagons of coal from the Mafube open-cast coal mine, operated by Exxaro Resources Ltd. and Thungela Resources Ltd., towards Richard&#8217;s Bay coal terminal, in Mpumalanga, South Africa on Thursday, Sept. 29, 2022. South Africa relies on coal to generate more than 80% of its electricity, and has been subjected to intermittent outages since 2008 because state utility Eskom Holdings SOC Ltd. can&#8217;t meet demand from its old and poorly maintained plants. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



Aug 20 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Transnet is seeking debt relief from the government as it seeks to repair its balance sheet and restore freight rail and port capacity, the state-owned logistics firm&#8217;s chairman said on Tuesday.



Transnet is saddled with 130 billion rand ($7.30 billion) in debt and has struggled to provide adequate freight rail and port services due to equipment shortages and maintenance backlogs after years of under-investment.



Last December, South Africa&#8217;s government said it had handed Transnet a 47 billion rand guarantee facility to help the company meet &#8220;immediate liquidity matters such as settling maturity debt&#8221;.



Transnet board Chairman Andile Sangqu told journalists that the company&#8217;s debt repayments were averaging just over 1 billion rand monthly.



Part of the debt had arisen from &#8220;state capture&#8221;, Sangqu said, referencing a graft scandal which rocked South Africa&#8217;s government between 2010 and 2018 under former President Jacob Zuma and cost Transnet and other state enterprises billions of rand in corrupt procurement deals.



&#8220;We will require the assistance of the shareholder to give us some form of debt relief,&#8221; Sangqu said.



He said efforts to restore Transnet&#8217;s freight volumes under a recovery plan announced in October 2023 were being undermined by debt servicing.



&#8220;As we begin to make this increase in volumes, as we begin to generate new operational cash flows, they all get wiped out by the debt service costs,&#8221; he said.



Transnet&#8217;s freight volumes have declined to 152 million metric tons in financial year 2023/24 from 226 million tons in 2017/18.



$1 = 17.8122 rand)



(Reporting by Felix Njini; Writing by Nelson Banya; Editing by Jonathan Oatis)

Coal Freight Transportation at Mafube Collier

South Africa’s Transnet seeks debt relief from government

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Treasury yields rally as Federal Reserve signals readiness for September rate cut

In Kenya, drought-weary farmers reap rewards of early warnings

Kenyan lender KCB Group reports 70% higher profit in H1

Why the latest mpox outbreak is raising alarm among health experts

How A Weakening Dollar Can Help American Consumers

Rwanda central bank lowers key rate for second meeting in a row

Establishing A Globally Competitive Pharma and Medical Manufacturing Cluster

South Africa inflation drop makes September rate cut more likely

Pro video gaming: How eSports is taking off with big dollars behind it

South African rand softer ahead of local inflation print

African Markets – Factors to watch on Aug 21

South African Markets – Factors to watch on Aug 21

Sibanye finalises $101 mln gold prepayment deal, refinances credit facility

Shein sues Temu over copyright infringement, alleges rival loses money on every sale

Nigeria expects to meet $12.5 billion revenue target

South Africa’s Transnet seeks debt relief from government

Why Airlines Like American Are Scrambling To Make Engines Last Longer

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Treasury yields rally as Federal Reserve signals readiness for September rate cut

In Kenya, drought-weary farmers reap rewards of early warnings

Kenyan lender KCB Group reports 70% higher profit in H1

Why the latest mpox outbreak is raising alarm among health experts

How A Weakening Dollar Can Help American Consumers

Rwanda central bank lowers key rate for second meeting in a row

Establishing A Globally Competitive Pharma and Medical Manufacturing Cluster

South Africa inflation drop makes September rate cut more likely

Pro video gaming: How eSports is taking off with big dollars behind it

South African rand softer ahead of local inflation print

African Markets – Factors to watch on Aug 21

South African Markets – Factors to watch on Aug 21

Sibanye finalises $101 mln gold prepayment deal, refinances credit facility

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Nigeria expects to meet $12.5 billion revenue target

South Africa’s Transnet seeks debt relief from government

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