<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 12 (Reuters) &#8211; The Ugandan shilling firmed slightly on Monday amid a slump in appetite for hard currency from across board, traders said.



At 0915 GMT commercial banks quoted the shilling at 3,718/3,728, compared to Friday&#8217;s close of 3,722/3,732.



(Reporting by Elias Biryabarema; Editing by Hereward Holland)

GettyImages-924883576-1

Ugandan shilling firms slightly on weaker demand

<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 12 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was stronger in early trade on Monday at the start of a week filled with closely watched global and domestic economic data releases.



At 0805 GMT, the rand traded at 18.25 against the dollar ZAR, 0.4% firmer than its previous closing level.



The U.S. dollar was down marginally against a basket of global currencies.



Analysts said the rand was likely to take its direction this week from global data prints including U.S. consumer inflation data on Wednesday, and South African mining, unemployment and retail sales figures over Tuesday and Wednesday.



The U.S. inflation reading will be scrutinised for clues on the Federal Reserve&#8217;s monetary policy path, while the local data releases will show whether Africa&#8217;s most industrialised economy gained any momentum in the middle of the year.



Oxford Economics Africa said the domestic data releases were not expected to show much improvement, with the unemployment rate seen stuck around 32%, the mining sector dealing with supply-side constraints and subdued consumer demand continuing to pressure retail.



The Johannesburg Stock Exchange&#8217;s All-Share index was little changed in early trade. One exception was Gold Fields, which dropped 2% after the company said it had agreed to acquire Osisko Mining for C$2.16 billion (about $1.57 billion).



(Reporting by Alexander Winning; Editing by Shounak Dasgupta)

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

South African rand firms at start of data-packed week

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1260" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-scaled.jpg" alt="" class="wp-image-422280" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-820x505.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-768x473.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-1536x945.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya Airways planes are seen through a window as the Jomo Kenyatta international airport reopens after flights were suspended following the coronavirus disease (COVID-19) outbreak in Nairobi, Kenya August 1, 2020. REUTERS/Njeri Mwangi/File Photo</figcaption></figure>



NAIROBI, Aug 12 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s main aviation union said it would&nbsp;call a strike&nbsp;from next Monday over a proposed deal with an Indian company to develop the country&#8217;s biggest airport &#8211; industrial action that could cause major disruption in the east African travel hub.



The Kenya Aviation Workers Union, which represents airport workers, said the proposed agreement announced last month with India&#8217;s Adani Airport Holdings would lead to job losses and bring in non-Kenyan workers.



It called on the government to scrap what it referred to as the&nbsp;&#8220;unlawful intended sale of JKIA (Jomo Kenyatta International Airport) to Adani Airport Holdings of India&#8221; in a seven-day strike notice issued on Monday.



Kenya&#8217;s government has said the airport is not for sale and that no decision had been made on whether to proceed with what it called a proposed public-private partnership to upgrade the hub.



An Adani Group spokesperson could not immediately be reached for comment.



Any walkout could also cause significant disruption to national carrier Kenya Airways.



&#8220;We shall reconsider our intention to engage in industrial action &#8230; only if the Adani Airport Holdings Limited&#8217;s deal is abandoned in its entirety,&#8221; Kenya Aviation Workers Union Secretary General Moss Ndiema said in the strike notice.



He repeated a call for the entire board of the Kenya Airports Authority (KAA) to resign.



The KAA confirmed on Monday that it had received a strike notice. &#8220;We are hopeful that a resolution can be reached through negotiation,&#8221; spokesperson Elijah Miano said.



The authority has said Adani would add a second runway at JKIA and upgrade the passenger terminal.



Kenya Airways Chief Executive Allan Kilavuka did not respond to a request for comment.



The government said in a statement on the Adani proposal last month that JKIA was stretched beyond its capacity of 7.5 million passengers a year and in urgent need of improvements, citing incidents like leaking roofs which it said had caused &#8220;international embarrassment&#8221;.



The statement said modernising JKIA could cost $2 billion, which the government was &#8220;constrained to fund due to the current tight fiscal situation&#8221;.



It said Adani&#8217;s offer was currently being reviewed. If a deal is agreed, the government said there would be safeguards to ensure Kenya&#8217;s national interests are protected.



A nationwide youth-led protest movement that emerged in June over proposed tax hikes has also criticised a perceived lack of transparency over the proposed Adani deal.



Last month police blocked protesters from accessing JKIA, which they had aimed to shut down.



(Reporting by Humphrey Malalo; Additional reporting by Aditya Kalra and Dhwani Pandya;Writing by Hereward Holland and Elias Biryabarema;Editing by Alexander Winning and Andrew Heavens)

FILE PHOTO: The coronavirus disease (COVID-19) outbreak in Nairobi

Kenya aviation union says to strike from Aug 19 over Adani deal

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



JOHANNESBURG, Aug 12 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, company announcements, equity and currency market moves may affect South African markets on Monday.



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



Offshore trading in stocks and bonds on the Johannesburg Stock Exchange



Treasury bill auction



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



Gold Fields aid on Monday it had agreed to acquire Osisko Mining for C$2.16 billion (about $1.57 billion).



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



South Africa&#8217;s rand edged higher on Thursday after data out of the United States showed a fall in jobless claims which eased fears of a hard landing in the world&#8217;s biggest economy.



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



Share markets were broadly firmer across Asia on Monday as a holiday in Japan removed one source of recent volatility, and investors looked ahead to major U.S. and Chinese economic data for an update on global growth prospects.



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



The S&amp;P 500 ended higher on Friday and was little changed for the week after regaining almost all of its losses since Monday&#8217;s steep dive that was prompted by fears of a recession and unwinding of a global yen-funded carry trade.



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



Gold prices struggled for momentum on Monday as investors looked forward to a key inflation report that could shed more light on the U.S. central bank&#8217;s next policy move. 



&#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; ANC, IFP leaders tell big business SA&#8217;s fate hangs in the balance



&#8211; Business to float water crisis as new focus for government partnership



&#8211; Wave of impairments on JSE tops 250 bln rand



&#8211; EU says ball is in SA court on meat ban



(Compiled by Alexander Winning)

Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering

South African Markets – Factors to watch on Aug 12

<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 12 (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-events">EVENTS:</h2>



The Kenya Aviation Workers’ Union are due to issue a strike notice on Monday about the planned lease of airport operations to Indian company Adani Holdings.



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



Asian stocks edged higher on Monday as a holiday in Japan removed one source of recent volatility, and investors hunkered down for major U.S. and Chinese economic data for an update on global growth prospects.



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



Oil prices were little changed in early Asian trading on Monday, holding on to most of last week&#8217;s more than 3% gains, supported by geopolitical tensions and better economic data.



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



South Africa&#8217;s rand edged higher on Thursday after data out of the United States showed a fall in jobless claims which eased fears of a hard landing in the world&#8217;s biggest economy.



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



Kenya&#8217;s shilling weakened slightly on Friday against the U.S. dollar, driven by increased demand from the manufacturing sector, but was partially offset by commercial banks offloading their long dollar positions, according to traders.



<h2 class="wp-block-heading" id="h-rwanda-election">RWANDA ELECTION</h2>



Rwanda&#8217;s President Paul Kagame was sworn into office on Sunday for a five-year term, after a landslide win in last month&#8217;s election extended his near quarter century in office.



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



Ghana opened its first commercial gold refinery in which the state holds shares on Thursday as part of an effort by Africa&#8217;s leading gold producer to add value and earn more from the precious metal, which has been mined there for centuries.



<h2 class="wp-block-heading" id="h-congo-mining">CONGO MINING</h2>



Democratic Republic of Congo said on Sunday it had begun talks with Zambia a day after its southern African neighbour sealed their common border, blocking a key export route for Congo, the world&#8217;s second-largest copper producer.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Aug 12

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="497" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/W7PY2CC6ZJLRDJORMQZHJQDQJA-820x497.jpg" alt="" class="wp-image-517983" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/W7PY2CC6ZJLRDJORMQZHJQDQJA-820x497.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/W7PY2CC6ZJLRDJORMQZHJQDQJA-300x182.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/W7PY2CC6ZJLRDJORMQZHJQDQJA-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/W7PY2CC6ZJLRDJORMQZHJQDQJA-768x466.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/W7PY2CC6ZJLRDJORMQZHJQDQJA-1536x931.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/W7PY2CC6ZJLRDJORMQZHJQDQJA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Congolese people carry their belongings as they flee from their villages around Sake, in Masisi territory, following clashes between M23 rebels and the Armed Forces of the Democratic Republic of Congo, toward Goma, North Kivu province, Democratic Republic of Congo, February 7, 2024. REUTERS/Arlette Bashizi/File Photo</figcaption></figure>



KINSHASA, Aug 11 (Reuters)&nbsp;&#8211;&nbsp;Democratic Republic of Congo said on Sunday it had begun talks with Zambia a day after its southern African neighbour sealed their common border, blocking a key export route for Congo, the world&#8217;s second largest copper producer.



Zambian Trade Minister Chipoka Mulenga announced a temporary border closure on Saturday after a Congolese ban on imported soft drinks and beer led to demonstrations by Congolese transporters in the town of Kasumbalesa on the Zambian border.



&#8220;Talks between the Congolese and Zambian governments have started since this Sunday via videoconference to lead to the rapid reopening of the borders,&#8221; the Congolese trade ministry said in a statement.



&#8220;In the hours that follow, the two parties will meet in Lubumbashi in Haut-Katanga to find a lasting solution regarding trade.&#8221;



Congo&#8217;s Trade Minister Julien Paluku Kahongya said in a statement earlier on Sunday that his ministry had received no formal notice of a trade dispute from Zambia before it announced the closure. In the statement, he detailed the two countries&#8217; trade agreement and its dispute settlement mechanisms.



&#8220;There is to date no dispute brought to (the ministry&#8217;s) attention in writing or through diplomatic channels,&#8221; he said. &#8220;It is willing, if necessary, to examine any request made by the Zambian party bound by the agreement, which also prohibits any retaliatory measures.&#8221;



Congo was the world&#8217;s no. 2 producer and no. 3 exporter of copper in 2023, producing about 2.84 million tons.



Zambia is a key export route for the Central African country. Most of Congo&#8217;s copper exports pass through the town of Kasumbalesa and into Zambia.



(Reporting by Ange Kasongo Adihe; Additional reporting by Chris Mfula in Lusaka; Writing by Portia Crowe; Editing by Andrew Cawthorne)

FILE PHOTO: Thousands more flee rebel advance in eastern Congo

DRC says it is in talks with Zambia to quickly reopen closed border

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="526" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/I7TTIRXOGFK2FPH7MOFJH3EWVI-820x526.jpg" alt="" class="wp-image-517965" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/I7TTIRXOGFK2FPH7MOFJH3EWVI-820x526.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/I7TTIRXOGFK2FPH7MOFJH3EWVI-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/I7TTIRXOGFK2FPH7MOFJH3EWVI-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/I7TTIRXOGFK2FPH7MOFJH3EWVI-768x493.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/I7TTIRXOGFK2FPH7MOFJH3EWVI-1536x985.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/I7TTIRXOGFK2FPH7MOFJH3EWVI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kigali, Rwanda, August 11, 2024. REUTERS/Jean Bizimana</figcaption></figure>



KIGALI, Aug 11 (Reuters) &#8211; Rwanda&#8217;s President Paul Kagame was sworn into office on Sunday for a five-year term, after a landslide win in last month&#8217;s election extended his near quarter century in office.



The 66-year-old former rebel leader won the July poll with 99.18% of the vote, after eight other candidates including his most vocal critics were barred by the electoral commission.



Kagame won acclaim from Western and regional leaders for helping end the 1994 genocide and turning Rwanda into an attractive investment and aid destination. But his reputation has been sullied by&nbsp;allegations&nbsp;of rights abuses and suppression of dissent plus supporting rebels in Democratic Republic of Congo &#8211; all accusations he has denied.



&#8220;For the last 30 years, our country has been good work in progress. This new mandate means the beginning of even more hard work,&#8221; Kagame said.



&#8220;That expectation to keep improving is not a dream, it is a reality. We can do it and we will do it.”



Sunday&#8217;s swearing-in took place at Kigali&#8217;s Amahoro national Stadium, with thousands in attendance, many wearing T-shirts in the yellow, green and blue colours of the national flag.



Kagame received a military 21-gun salute, accompanied by cheers from the crowd. Twenty-two heads of state from African countries were in attendance.



Rwanda&#8217;s constitution was changed in 2015, allowing Kagame to extend his time in office.



The two men who vied against him last month &#8211; Frank Habineza from the Democratic Green Party and independent Philippe Mpayimana &#8211; both conceded defeat in the election, which rights groups say was marred by a crackdown on media, the opposition and civil society groups.



A government spokesperson repeatedly rejected such criticism during the election period.



(Writing by George Obulutsa; Editing by Andrew Cawthorne)

Rwanda’s President Paul Kagame’s swearing-in ceremony at the Amahoro Stadium, Gasabo District of Kigali

Rwanda’s President Kagame sworn in to extend lengthy tenure

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1261" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OZ4B5K4TQZJQ3DGFJGTGZNTIYQ-scaled.jpg" alt="" class="wp-image-425668" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OZ4B5K4TQZJQ3DGFJGTGZNTIYQ-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OZ4B5K4TQZJQ3DGFJGTGZNTIYQ-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OZ4B5K4TQZJQ3DGFJGTGZNTIYQ-820x505.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OZ4B5K4TQZJQ3DGFJGTGZNTIYQ-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OZ4B5K4TQZJQ3DGFJGTGZNTIYQ-768x473.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OZ4B5K4TQZJQ3DGFJGTGZNTIYQ-1536x946.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: A man walks beneath electricity pylons during frequent power outages from South African utility Eskom, caused by its ageing coal-fired plants, in Orlando, Soweto, South Africa, January 16, 2023. REUTERS/Siphiwe Sibeko//File Photo</figcaption></figure>



PRETORIA, Aug 12 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s plan to expand its power grid, now the biggest bottleneck to replacing coal with renewables, has hit a snag: finding investors to lend the necessary $21 billion to a near-bankrupt state monopoly.



Since May&#8217;s election brought a coalition government to power, there has been a policy shift favouring renewables, after years of bureaucratic delays and contradictory messages about South Africa&#8217;s willingness to give up coal, which provides 80% of its power.



But as private providers &#8211; including Mainstream Renewable (owned by Aker Horizons&nbsp;AKH.OL), EDF Renewables&nbsp;EDF.PA&nbsp;and Acciona SA&nbsp;ANE.MC&nbsp;&#8211; prepare to transform the sector, many face another problem: how to get power from sunny and windy outposts to energy-hungry urban centres.



Six officials told Reuters over the past month they were considering options for financing some 14,000 kilometers (8,700 miles) of power lines and pylons, but hadn&#8217;t yet found a solution.



&#8220;Our quest to decarbonise &#8230; relies heavily on our ability to expand the grid,&#8221; new Energy Minister Kgosientso Ramokgopa told Reuters at his office in Pretoria late last month.



&#8220;But raising 390 billion rand ($21.30 billion), the state doesn&#8217;t have the balance sheet to roll out that size of capital investment.&#8221;



Meanwhile, donors offering a total of $11.6 billion mostly in loans to fund climate-related projects are reluctant to lend the needed cash to state power firm Eskom without sovereign guarantees, which the government cannot currently provide, two donor country sources and a South African source involved in the programme, told Reuters.



That is because of its high debt levels &#8211; Eskom owes over 400 billion rand, even after receiving billions in government debt relief. Broke municipalities also owe the utility 78 billion rand, which Ramokgopa calls an &#8220;existential threat&#8221;.



Representatives of the German and French partners in the donor-funded program did not respond to emailed questions, while British partners declined to officially comment.



<h2 class="wp-block-heading" id="h-simply-no-way">&#8220;SIMPLY NO WAY&#8221;</h2>



Burning coal has rendered South Africa among the world&#8217;s top 15 greenhouse gas emitters &#8211; above Italy, France and Britain. It is seen as a test case for aid to developing countries to switch to green energy, alongside Vietnam and Indonesia.



But years of blackouts from aging power stations have also ravaged Africa&#8217;s most industrialised economy, and Eskom only ended them earlier this year by firing up its coal burners to full capacity, most likely increasing emissions.



A bidding process to bring in independent producers to generate power and sell it to Eskom last year failed owing to insufficient grid capacity, Rudi Dicks, head of project management at President Cyril Ramaphosa&#8217;s office, said.



The core issue is that the grid stems from the northeastern coal belt, but the sun beats down hardest on the semi-desert Northern Cape, while coastal Eastern Cape gets the best winds.



&#8220;You really need to reconfigure the entire grid &#8230; (but) they are chugging along building at less than 10% the pace that&#8217;s needed,&#8221; Crispian Oliver, head of the Presidential Climate Commission, told Reuters.



Eskom&#8217;s plan involves building 1,400 kilometres of transmission lines every year for at least 10 years. Last year, it managed 74 km (45 miles).



&#8220;There&#8217;s simply no way Treasury can put out (sufficient) &#8230; guarantees,&#8221; Oliver told Reuters, remarks echoed by Ramokgopa.



&#8220;The alternative is to &#8230; get the private sector to take on large portions of the risk,&#8221; Oliver said, via mezzanine finance.



<h2 class="wp-block-heading" id="h-we-need-to-build-now">&#8220;WE NEED TO BUILD NOW&#8221;</h2>



A Treasury spokesperson did not respond to a request for comment, but the two donor sources said options included escrow accounts &#8211; in which a neutral third party holds the funds and releases them when both sides have met their obligations &#8211; and offtake agreements with private firms that would fund construction in exchange for future earnings.



The latter could unlock cash from the United States, which currently doesn&#8217;t fund transmission as it will not work with public institutions.



&#8220;Should a framework involving private entities be established, we would be open to exploring partnerships,&#8221; Emilia Adams, a U.S. embassy spokesperson, said.



Eskom CEO Dan Marokane told Reuters that to attract private companies into transmission, the regulator still needed to overhaul tariffs &#8220;because investors want to know with certainty what their return expectations can be&#8221;.



He hoped this would happen by year-end.



Dicks, meanwhile, said the Treasury had agreed in principle to fund some grid buildout on a case-by-case basis, and that work was underway to get private firms involved.



&#8220;But that&#8217;s 18 months away,&#8221; he said. &#8220;And we need to build right now&#8221;.



Officials had agreed to adopt engineering procurement and construction financing (EPC) and independent power transmission funding (IPT) methods, Dicks said, with the latter opening up the possibility of getting China, which last year signed a raft of energy deals with South Africa, involved.



A spokesperson for The State Grid Corporation of China could not be reached for comment.



($1 = 18.4847 rand)



(Reporting by Tim CocksAdditional reporting by Collen Howe in Beijing and Kopano Gumbi in Johannesburg; Editing by Sharon Singleton)

FILE PHOTO: South Africa’s Eskom to reduce power cuts but long-term outlook bleak

South Africa battles to fund vital grid upgrade for green energy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AMFIPVFR25OWJEGKNAXCTAXDRQ-820x546.jpg" alt="" class="wp-image-517945" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AMFIPVFR25OWJEGKNAXCTAXDRQ-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AMFIPVFR25OWJEGKNAXCTAXDRQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AMFIPVFR25OWJEGKNAXCTAXDRQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AMFIPVFR25OWJEGKNAXCTAXDRQ-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AMFIPVFR25OWJEGKNAXCTAXDRQ-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AMFIPVFR25OWJEGKNAXCTAXDRQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Students attend a class at Super Climax Academy, a coaching institute training students to prepare for competitive examinations to secure government jobs, in Prayagraj, India, June 21, 2024. REUTERS/Sahiba Chawdhary</figcaption></figure>



ZURICH, Aug 12 (Reuters)&nbsp;&#8211;&nbsp;Youth unemployment worldwide last year dipped to a 15-year-low and is likely to continue falling through 2025, although weaker growth means Asia has lagged this trend, the International Labour Organization said in a report published on Monday.



The ILO said 64.9 million people aged between 15 and 24 worldwide were unemployed last year, good for a rate of 13%, and it forecast that proportion would decrease further over the following two years to sit at 12.8% in 2024 and 2025.



The improvement in the market was driven by robust economic growth rates following the COVID-19 pandemic which has spurred demand for youth labour, the ILO said.



Youth unemployment rates in 2023 returned to their pre-pandemic rates or lower in most, but not all subregions.



For young people in the Arab States, East Asia, and South-East Asia and the Pacific, youth unemployment rates were higher last year than in 2019, the ILO said.



For the Arab States, this was a continuation of the pre-COVID-19 trend. But for the Asian subregions, it marked a change of direction from the stronger growth of the pre-COVID years.



The ILO also noted that the far lower average age of the population in Africa than in more developed nations has raised questions about economic sustainability there.



The imminent &#8220;youthquake&#8221; in Africa means job creation is becoming a critical issue for social justice and the future of the global economy, the organization said.



(Reporting by Dave Graham, Editing by Rachel More)

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MOGADISHU, Aug 8 (Reuters)&nbsp;&#8211;&nbsp;Somalia&#8217;s cabinet approved a bill on Thursday that, if confirmed by parliament, will revert the country&#8217;s election system to universal suffrage for the first time in decades, ending a process of indirect voting, the government&#8217;s spokesperson said.



Amid widespread insecurity caused by an Islamist insurgency and weak state structures, in recent years lawmakers voted for the president, while clan heads and elders elected lawmakers in both the federal government and regional states.



The country had initially been scheduled to move to direct voting in 2020, but protracted squabbles among politicians and persisting insecurity across the country forced the government to retain the indirect ballot.



&#8220;The election rules will lead the country to one person one vote nationally,&#8221; government spokesperson Farhan Jimale said in a statement.



&#8220;(This) will give the citizens the power to vote and elect for the first time after 55 years. It is a historic day&#8221; he said.



The policy was announced last year by President Hassan Sheikh Mohamud, who was elected by lawmakers for a five-year mandate in May 2022.



Its roll-out faces significant logistical and security challenges because of the lack of infrastructure and al Shabaab, an Islamist militant group, maintains control over large swathes of the country.



(Reporting by Abdi Sheikh; Writing by Hereward Holland; Editing by Toby Chopra)

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NAIROBI, Aug 8 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s currency is forecast to strengthen against the dollar in the next week to Thursday, while Ghana&#8217;s, Nigeria&#8217;s and Zambia&#8217;s are expected to be relatively stable, and Uganda&#8217;s could fall, traders said.



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



Kenya&#8217;s shilling could gain ground, helped by remittances and offshore dollar inflows to buy government bonds.



Commercial banks quoted the shilling at 128.50/129.50 per dollar, compared with last Thursday&#8217;s closing rate of 129.00/130.00.



&#8220;It will remain fairly supported, with a bias to a stronger shilling. We might see some attraction on the upcoming infrastructure bond sale, it might attract some foreign investor flows,&#8221; one trader said.



Kenya&#8217;s central bank is selling infrastructure bonds worth a total of 50 billion shillings this month.



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



Ghana&#8217;s cedi is seen trading relatively stable next week on matched demand and supply on the interbank market.



LSEG data showed the cedi trading at 15.54 to the dollar, from 15.48 at last Thursday&#8217;s close.



&#8220;We expect the cedi to remain stable at the current levels, barring any resurgence of aggressive bidders on the market,&#8221; said Selasi Kabo, a forex trader at Stanbic Bank Ghana.



&#8220;The local unit traded relatively stable against the dollar in the past week, with very little activity between market makers,&#8221; said Sedem Dornoo, a senior trader from Absa Bank Ghana.



&#8220;Up ahead, we could see some pressure on the cedi in the next few weeks given upcoming coupon payments on the restructured bonds, as coupon recipients may look to purchase hard currency,&#8221; he added.



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



Nigeria&#8217;s naira is expected to trade around current levels after the central bank intervened in the market this week to ease pressure on the currency.



LSEG data showed the naira was quoted at 1,580 to the dollar on the official market on Thursday, compared with around 1,625 a week ago. The unit sold at about 1,620 in street trading on Thursday.



On Wednesday the central bank sold $876 million at 1,495 naira to the dollar at its first retail auction to end users. The naira was quoted at 1,628 to the dollar before the auction result was announced.



&#8220;The sale of dollars directly to retail end users at a below market rate will see the recent pressure on the naira cool off,&#8221; one trader said.



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



Zambia&#8217;s kwacha is expected to hold steady in the coming week on improved dollar inflows and reduced demand for hard currency.



The currency of Africa&#8217;s second-largest copper producer traded at 26.05 to the dollar on Thursday, from 25.95 at the close of business a week ago.



&#8220;The local unit is likely to remain stable with a bias to post minor gains on improved market liquidity amid a slowdown in importer (dollar) appetite,&#8221; Zambia National Commercial Bank said in a note.



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



Uganda&#8217;s shilling is seen trading with a moderately weakening tone on the back of an interest rate cut by the central bank.



Commercial banks quoted the shilling at 3,725/3,735 to the U.S. dollar, compared to last Thursday&#8217;s close of 3,730/3,740.



&#8220;There will be a bit of a negative sentiment from the rate decision that will negatively weigh on the shilling, but I don&#8217;t anticipate a significant movement,&#8221; one trader said.



On Wednesday the Bank of Uganda cut its benchmark lending rate by 25 basis points, saying a recovery in the shilling had led to an improvement in the inflation outlook.



(Reporting by George Obulutsa, Christian Akorlie, Elisha Bala-Gbogbo, Elias Biryabarema and Chris MfulaEditing by Alexander Winning)

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Ugandan shilling firms slightly on weaker demand

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Ugandan shilling firms slightly on weaker demand

South African rand firms at start of data-packed week

Kenya aviation union says to strike from Aug 19 over Adani deal

South African Markets – Factors to watch on Aug 12

African Markets – Factors to watch on Aug 12

DRC says it is in talks with Zambia to quickly reopen closed border

Rwanda’s President Kagame sworn in to extend lengthy tenure

South Africa battles to fund vital grid upgrade for green energy

Global youth unemployment in decline and seen falling further, report finds

America Is In A ‘Plain Vanilla Recession’: Danielle DiMartino Booth | The Bottom Line

How ChatGPT Made OpenAI One Of The Most Valuable AI Startups

How Olympic athletes make money

Why Mexico Beats The U.S. In Avocado Production

Could hydrogen planes revolutionize the aviation industry?

Somalia’s cabinet approves bill for universal suffrage

Here’s how much athletes at the Paris Olympics earn for winning medals

Kenya’s currency seen strengthening, Ghana’s steady

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