<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-scaled.jpg" alt="" class="wp-image-373504" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1110x740.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-696x464.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1068x712.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-1920x1280.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/101416618-rand-600x400.jpg 600w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /></figure>



JOHANNESBURG, July 18 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand was little changed on Thursday, ahead of an interest rate decision by the South African Reserve Bank (SARB).



At 0903 GMT, the rand traded at 18.1900 against the dollar, not far from its previous close of 18.1950.



The SARB&#8217;s monetary policy committee will announce its rate decision later on Thursday and provide an update on South Africa&#8217;s economic outlook.



It is expected to leave its repo rate unchanged at 8.25%, according to economists polled by Reuters, but cut rates by 25 basis points to 8.00% in September as inflation cools.



Investor focus will also be on a speech by President Cyril Ramaphosa later in the evening, when he is expected to outline the priorities of the newly formed broad coalition government.



On the stock market, the Top-40 index was last up 0.4%.



South Africa&#8217;s benchmark 2030 government bond was weaker in early deals, with the yield up 2.5 basis points to 9.625%.



(Reporting by Bhargav Acharya; Editing by Janane Venkatraman )

101416618-rand

South African rand little changed ahead of rate decision

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-400697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1-300x200.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Double exposure of coin stack with city background and world map, financial graph, world map and global network business concept idea, element by NASA.</figcaption></figure>



JOHANNESBURG, July 18 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic and political events, company announcements, equity and currency market moves may affect South African markets on Thursday.



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



President Cyril Ramaphosa&#8217;s opening of parliament address, laying out priorities for new administration from 1700 GMT



South African central bank interest rate announcement from 1300 GMT



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



Investment holding company Brait will release the offer price of its 1.5 billion rand ($82.63 million) rights issue.



Anglo American Platinum expects its half-year profit to decline by as much as 25%, mainly due to lower prices of palladium and rhodium, it said on Thursday.



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



The South African rand dropped sharply on Wednesday, as investors dumped riskier assets globally because of worries over the state of the world economy and geopolitical risks after U.S. presidential candidate Donald Trump&#8217;s remarks on Taiwan.



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



Asian equities slid on Thursday, led by chip stocks as investors fret over the prospect of escalating trade tensions between the U.S. and China, while the yen was firm after scaling a six-week high following suspected interventions by Tokyo.



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



The S&amp;P 500 and the Nasdaq tumbled on Wednesday as plunging microchip shares, in the face of potential escalation of U.S. trade conflicts with China, exacerbated the ongoing rotation out of megacap tech-related stocks.



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



Gold prices rose on Thursday, hovering near a record high scaled in the previous session, as rising anticipation of a U.S. interest rate cut in September lifted demand for non-yielding bullion.



&#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; Trade and industry department wants to use pensions to fund industrialisation



&#8211; Gwede Mantashe wants private investors for Sapref refinery rebuild



&#8211; Enoch Godongwana says Treasury is set on reducing debt



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



&#8211; Godongwana pledges to fast-track private investment in water and transport



($1 = 18.1541 rand)



(Compiled by Alexander Winning)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on July 18

<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>



July 18 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.



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



Asian equities fell on Thursday, led by chip stocks as investors fret over the prospect of escalating trade tensions between the U.S. and China, while the yen surged to a six-week high in the wake of suspected interventions by Tokyo last week.



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



Oil prices extended gains from the previous session on Thursday, buoyed by a bigger-than-expected decline last week in crude stockpiles in the United States, the world&#8217;s largest oil consumer.



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



The South African rand dropped sharply on Wednesday, as investors dumped riskier assets globally because of worries over the state of the world economy and geopolitical risks after U.S. presidential candidate Donald Trump&#8217;s remarks on Taiwan.



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



Nigeria&#8217;s naira fell to 1,612.50 per dollar on the official market on Wednesday, its lowest level in four months, LSEG data showed.



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



Kenya&#8217;s shilling was stable on Wednesday as foreign exchange inflows from tea exports matched dollar demand, traders said.



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



Nigeria&#8217;s President Bola Tinubu has asked the Senate to approve an additional spending of 6.2 trillion naira ($4 billion) to plug shortfalls in this year&#8217;s national budget, according to a letter read to lawmakers on Wednesday.



<h2 class="wp-block-heading" id="h-zimbabwe-currency">ZIMBABWE CURRENCY</h2>



Zimbabwe&#8217;s government will stick to what it promised when it launched a new currency in April by ensuring it remains fully backed by reserves, the central bank governor told Reuters on Wednesday, adding that was the only way to build trust.



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



TotalEnergies has sold its minority share in a major Nigerian onshore oil joint venture to Mauritius-based Chappal Energies for $860 million, the French energy group said on Wednesday.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on July 18

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-scaled.jpg" alt="" class="wp-image-408693" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A sign stands at the entrance to the offices of Anglo American Plc in the Marshalltown district of Johannesburg, South Africa, on Friday, Oct. 26, 2012. Anglo American Plc Chief Executive Officer Cynthia Carroll , the first woman, external hire and non-South African to hold the job, will quit after Anglo lost $14 billion in value in the more than five years she was in charge. Photographer: Chris Ratcliffe/Bloomberg via Getty Images</figcaption></figure>



LONDON July 18 (Reuters) &#8211; Anglo American said its copper output was almost flat in the first half, while it curbed this year&#8217;s output forecast for coking coal, which is likely to weigh on earnings just months after it rebuffed a takeover bid from rival BHP Group.



Copper production rose 2% to 393,800 metric tons in the six months through June and is on track to meet full-year guidance, Anglo said in a statement.



Copper demand is expected to rise sharply in coming years for use in applications ranging from solar panels and electric cars to data centres for artificial intelligence.



Anglo&#8217;s share price was up 1.4% by 0709 GMT.



Anglo cut its output guidance for steelmaking coal to between 14 million tons to 15.5 million tons from 15 to 17 million tons previously, as it battles an underground fire at its Grosvenor coal mine in Australia that started on June 29.



Anglo has put its five operating coal mines, development projects and joint ventures in Australia up for sale, as part of a wider plan to divest less profitable assets and focus on expanding copper output after BHP&#8217;s failed attempt to take over the company. But analysts say the timing and value of a planned sale of coal assets are now uncertain.



&#8220;The mine has been stabilised and we are re-establishing comprehensive underground gas monitoring, prior to being able to assess the steps towards a safe re-entry into the mine,&#8221; Anglo said in a statement on Thursday.



Assessment of the damage and re-opening is likely to take several months, the company said.



Iron ore production was also flat at around 31 million tons in the first half, while platinum group metals (PGM) output fell 5% and rough diamond production dropped 19%.



&#8220;An expected recovery in PGM and diamond prices could help sentiment while a renewed approach from BHP cannot be ruled out,&#8221; analyst Marina Calero at RBC Capital Markets said.



&#8220;However, we view the outlook for Anglo as more balanced in the near term as the sale of the steelmaking coal assets gets more complicated at a time when we expect iron ore prices to roll in H2 24,&#8221; she added.



(Reporting by Clara Denina and Felix Njini; editing by Jason Neely and Sharon Singleton)

Anglo American Plc’s South African Headquarters As CEO Cynthia Carroll Quits

Anglo cuts coal output forecast after fire at Australian mine

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1600" height="900" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/106463174-1585290052493gettyimages-871925648.jpeg" alt="" class="wp-image-508834" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/106463174-1585290052493gettyimages-871925648.jpeg 1600w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/106463174-1585290052493gettyimages-871925648-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/106463174-1585290052493gettyimages-871925648-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/106463174-1585290052493gettyimages-871925648-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/106463174-1585290052493gettyimages-871925648-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/106463174-1585290052493gettyimages-871925648-1536x864.jpeg 1536w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Chinese President Xi Jinping and former U.S. President Donald Trump in Beijing, China, in 2017. Artyom Ivanov | TASS | Getty Images</figcaption></figure>



BEIJING — If Donald Trump wins the U.S. presidential election, his plans for 60% tariffs on Chinese goods could be a “major downside growth risk” to China, according to Goldman Sachs.



Chances of Trump becoming the next president ticked higher after he survived an assassination attempt on Saturday and selected former critic JD Vance as his running mate two days later.



“Right now exports are a major bright spot in the Chinese economy, and I think the policymakers might want to be prepared,” Hui Shan, chief China economist at Goldman Sachs told CNBC’s “Squawk Box Asia” on Tuesday.



“We are seeing tariff narratives, not only in the U.S., but across other major trading partners of China’s,” she said. “So this is not going to be a sustainable driver of growth for China.”&nbsp;



The U.S. is China’s largest trading partner on a single-country basis, while the European Union has fallen behind Southeast Asia as China’s largest regional trading partner. Trump had raised duties on Chinese goods when president in 2018 and has threatened to increase them to 60% if reelected this fall.\



The contribution of goods exports to real GDP growth in China for the second quarter of this year was the highest since the first quarter of 2022, when Covid restrictions limited domestic economic activity, according to Citi.



Meanwhile,&nbsp;Beijing’s push to develop high-end manufacturing has not yet been able to fully offset a real estate slump and lackluster consumption.



U.S. officials such as Treasury Secretary Janet Yellen have said that China’s policies to boost its industrial capability and technological self-reliance have led to U.S. job losses.



<h2 class="wp-block-heading" id="h-china-the-biggest-threat"><a></a>China the ‘biggest threat’?</h2>



In his first interview since he was selected as Trump’s running mate, Vance told Fox News that instead of the war in Ukraine, China was the “real issue” for the U.S. and posed the “biggest threat.”



The Biden campaign has criticized Trump’s pick, saying the choice was deliberately made “because Vance will do what Mike Pence wouldn’t on January 6: bend over backwards to enable Trump and his extreme MAGA agenda, even if it means breaking the law and no matter the harm to the American people.”



Supporters of Trump, who was president at that time, had stormed the U.S. Capitol in an attempt to overturn the 2020 presidential election results on January 6, 2021.



Asked about Vance’s comment, China’s Ministry of Foreign Affairs spokesperson Lin Jian said Tuesday at a daily press briefing, “We are always opposed to making China an issue in U.S. elections.”



<h2 class="wp-block-heading" id="h-calls-for-stimulus"><a></a>Calls for stimulus</h2>



China’s economy grew by 4.7% in the second quarter compared to a year ago, missing economists’ expectations and bringing growth for the first half of the year to 5%. It prompted some calls for more stimulus if the world’s second-largest economy is to reach 5% growth for the full year.



The downside risk from potentially higher U.S. tariffs under Trump would primarily come from the greater uncertainty and tighter financial conditions, as well as pressure on the Chinese yuan, Goldman’s Shan said. She pointed out that tariffs in 2018 did not significantly dent China’s exports to the U.S.



More recent data, however, showed a slowdown in that trade. China’s exports to the U.S. rose by a modest 1.5% in the first half of the year.



“Policymakers need to think about domestic demand and focusing on something that is more persistent and sustainable for the growth outlook,” Shan told CNBC on Tuesday.



If 60% tariffs are imposed, “that’s pretty high and we think the implication for the macro economy is pretty significant,” she added.



So far, China has held back on stimulus measures. The country’s top leaders are meeting in Beijing this week for a highly anticipated Third Plenum, which is expected to determine long-term economic policy goals.



Citi analysts said Monday that weak retail sales and disappointing second-quarter growth won’t be enough to convince Beijing to increase support for the economy.



“Policymakers may tolerate short-term weakness amid the structural shift of the property sector,” the analysts said. “More concerns on trade and external relationships could also lead China to save the policy space for future.”



Citi forecasts 5.0% growth in real GDP growth for China this year.



China’s U.S. dollar-denominated exports grew by 3.6% in the first six months of the year after better-than-expected global demand for Chinese goods in recent months.



“Manufacturing and infrastructure investment may stay robust and exports should stay in decent [year-on-year] growth in [the third quarter], with possible front-loading of shipment orders in [the second half of the year] due to fears of higher tariffs,” Tao Wang, head of Asia economics and chief China economist at UBS Investment Bank said in a note Tuesday.



She said Chinese authorities would likely be reluctant to roll out major stimulus in the next few months in order to save resources in the case of greater economic weakness and increased tariffs.



UBS forecasts 4.9% growth for China’s economy this year.



<h2 class="wp-block-heading"><a></a>Trump the dealmaker</h2>



Not all analysts believe a possible Trump presidency will prove detrimental to China, though.



Ben Harburg of Corevalues Alpha told CNBC on July 4 that he believes China is more likely to have “positive” trade outcomes under a Trump presidency, given the ex-president’s “transactional nature.” “He’s a dealmaker, and like any negotiator, he likes to kind of set the bar low, and kind of set his price low, and then work up from there,” the portfolio manager said on “Street Signs Asia.”



Speaking on foreign policy, Harburg pointed out that another Biden term would also mean continued tariffs, as well as “encroachment on Chinese domestic issues” — which would not significantly improve China’s economy, nor U.S.-China relations.



He said a Trump-China partnership would signify “a more binary potential for a positive outcome for China.”



CNBC’s Sonia Heng contributed reporting from Singapore.

106463174-1585290052493gettyimages-871925648

What would a second Trump presidency mean for China? Goldman Sachs weighs in

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="574" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-820x574.jpg" alt="" class="wp-image-423487" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-820x574.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Nigeria&#8217;s newly declared winner of 2023 presidential election, Bola Tinubu speaks at the National Collation Centre in Abuja, Nigeria, March 1, 2023. REUTERS/Esa Alexander</figcaption></figure>



ABUJA, July 17 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s President Bola Tinubu has asked the Senate for an extra 6.2 trillion naira ($4 billion) in funding to plug shortfalls in this year&#8217;s national budget, according to a letter read to lawmakers on Wednesday.



Tinubu also sought to impose a one-off windfall tax on banks&#8217; foreign exchange gains, as his government aims to raise revenues to fund &#8220;capital infrastructure development, education, and healthcare as well as welfare initiatives.&#8221;



Senators immediately started debating a bill to approve the new funding request, which comes at a time when the government is under pressure from unions to agree a new minimum wage amid the country&#8217;s worst cost of living crisis in a generation.



($1 = 1,555.0000 naira)



This is a developing story&#8230;



(Reporting by Camillus Eboh; Writing by MacDonald Dzirutwe; Editing by Hugh Lawson)

The Independent National Electoral Commission declares Bola Tinubu winner of Nigeria’s 2023 presidential elections in Abuja

Nigeria’s president asks lawmakers for extra $4 billion funding

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1544" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CAMB3048-1-scaled.jpg" alt="" class="wp-image-508589" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CAMB3048-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CAMB3048-1-300x226.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CAMB3048-1-820x618.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CAMB3048-1-119x90.jpg 119w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CAMB3048-1-768x579.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CAMB3048-1-1536x1158.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Zen Dlamini &#8211; Executive Head: Infrastructure and Sovereign &amp; Public Sector, at Standard Bank CIB</figcaption></figure>



South African public-private partnerships (PPPs) are the key to unlocking the massive infrastructure investment opportunities available to investors. The funding capacity of local investors is, however, not sufficient to meet the country’s infrastructure funding needs. The total value of the country’s Strategic Integrated Projects project pipeline has grown from R340 billion in July 2020 to R540 billion today, and the South African Government estimates that it will require R3.2 trillion (US$168 billion) from the private sector in order to meet its infrastructure needs by 2030.



South Africa’s ambitious infrastructure objectives cover four mission-critical infrastructure areas: energy, transport, water and digital communications. These areas, were they to receive sufficient investment, would support economic growth and job creation, and act as an enabler of future development. President Ramaphosa said in March this year: “Infrastructure is an enormous economic multiplier, providing dividends for an economy long after the infrastructure has been delivered.”



To unlock this potential, and to meet South Africa’s crucially important developmental needs, the country’s state-owned companies (SOCs) are increasingly looking at International Investors for PPP opportunities aligned with their interests and capacity.&nbsp; Over the past decade, the GCC has emerged as a major investor with interest across Africa, with a growing number of trade deals that significantly benefit both regions. Foreign Direct Investments from the GCC into Africa from 2012-2022 saw $101.9 billion invested in 628 projects.&nbsp;



South Africa’s infrastructural investment opportunities span various economic sectors, offering portfolio diversification potential for investors seeking global opportunities. The opportunities include social and utility infrastructure projects to improve access to much-needed water and power resources, and vital transport networks, including roads, rail, and ports. There are also ample investment opportunities in digital infrastructure and developing agriculture and agro-processing infrastructure.



The South African government is highly incentivised to create conditions conducive to attracting international investments, and that includes establishing a predictable and sustainable regulatory environment. Faced with a notable decline in PPP activity in recent years, the National Treasury has instituted reforms that simplify and speed up the regulatory process of establishing PPPs.



It has created two pathways for PPPs: one for high-value projects and a simplified version for low-value projects (less than R2 billion). The reforms mean that low-value projects no longer have to go through the lengthy process of obtaining Treasury approvals. Thus, investors who want to partner with the government on a smaller project won’t need to go through the time-consuming processes previously required.



As a bank committed to fostering cross-border relationships and collaboration between all the local and international stakeholders that will make these partnerships a success, Standard Bank fully supports the amended PPP regulatory framework. We believe this will make it easier for South Africa to benefit from the more than $50 trillion international investment pool held by the world’s top 300 investors.



It is important that international investors work with institutions that can capably navigate the country’s broader regulatory framework. For instance, international investors entering into PPPs must prioritise community building, job creation, localisation, and skills transfer. They would also be expected to source local suppliers from the surrounding communities instead of importing necessary supplies. Unless given a special dispensation as a priority project, international investors must meet the local requirements.



For investors looking to explore South African PPP infrastructure investment opportunities, Standard Bank is ideally positioned to help. We have the local know-how, experience, and expertise and have been a committed role player in the government’s private sector capital-raising initiatives. In terms of assets, we are the largest of the big four commercial and investment banks in sub-Saharan Africa and are equipped to put together large, impactful, and high-profile PPPs.



Already a meaningful partner to many international investors, Standard Bank has a global presence in 20 countries on the African continent, as well as in the UAE, Dubai, Beijing, London, New York, New Jersey, and the Isle of Man. We are a preferred partner for many global multinationals coming to the continent and South Africa. We operate across multiple sectors and have been involved in many large infrastructure projects in the renewable energy sector in particular, including a sizeable hydro-electric project in the Northern Cape.



Standard Bank has long nurtured its relationships with investors in the GCC and the surrounding region, where investors have access to substantial capital and the appetite to invest in the opportunities South Africa has to offer. These opportunities offer investors sustainable, long-term returns and exposure to a fast-growing population with tremendous economic potential.



Standard Bank’s State-Owned Company Investment Summit, held recently in Dubai, provided a platform for investors in the Gulf region to connect with representatives of South Africa’s state-owned companies to explore infrastructure opportunities and possible collaborations. We expect the summit to lead to a round of significant infrastructural investment agreements, as has occurred at each previous iteration of this annual event.



PPPs in South Africa have played a crucial role in attracting much-needed private investment. But more is needed. By sharing risks and rewards with the private sector, and international investors in particular, the government can unlock additional funding sources and accelerate the development of critical infrastructure projects.



The overhaul of the PPP regulatory framework has been instrumental in sending the right message to international investors about South Africa’s infrastructure opportunities. The country cannot meet its massive infrastructure development goals – and reach its full economic potential – without international investors and successful PPPs. The latest regulatory changes shift the dial in the right direction for all stakeholders.

CAMB3048-1

South Africa’s PPP reforms provide an investor-friendly platform for global infrastructure capital

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg" alt="" class="wp-image-422955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg 2048w, 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-924883576-1-820x547.jpg 820w, 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" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, July 17 (Reuters) &#8211; The Ugandan shilling was weaker on Wednesday, undermined by an uptick in demand for dollars from merchandise importers, traders said.



At 1045 GMT, commercial banks quoted the shilling at 3,695/3,705, compared with Tuesday&#8217;s closing rate of 3,688/3,698 levels.



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

GettyImages-924883576-1

Ugandan shilling weaker on uptick in importer dollar demand

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1292" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg" alt="" class="wp-image-416545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-300x189.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-768x484.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-1536x969.jpeg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A participant stands near a logo of World Bank at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018.
Johannes Christo | Reuters</figcaption></figure>



LONDON, July 17 (Reuters)&nbsp;&#8211;&nbsp;The World Bank is looking to issue its first drought bond in the next 12-18-months and broaden its offering of catastrophe bonds supporting countries suffering devastation from storms and earthquakes, a senior executive at the lender said.



The drought bond would be a new instrument in the multilateral lender&#8217;s suite of so-called cat bonds &#8211; fixed income instruments that pay out to countries in the event of a natural disaster.



&#8220;We would love to do something in the drought space, that is something we are working on,&#8221; said George Richardson, director of the capital markets and investment department at the World Bank Treasury told Reuters, adding this would be most likely focussed on Africa.



The World Bank has arranged and issued cat bonds though its lending arm, the International Bank for Reconstruction and Development (IBRD), to help emerging economies mitigate the fallout from storms and earthquakes for well over a decade. It has made $568 million of insurance payouts on these instruments.



The vast majority of the World Bank&#8217;s existing cat bonds cover countries in the Pacific and Caribbean regions, with Mexico dominating issuance.



The lender was now in talks with more countries to broaden the geographic scope, Richardson said.



Southern Africa is reeling from its worst drought in years, owing to a combination of naturally occurring El Nino &#8211; a warming of waters in the eastern Pacific leading to hotter weather across the world &#8211; and higher average temperatures produced by greenhouse gas emissions. This led to a number of record-breaking weather extremes last year.



Richardson said modelling droughts, wildfires and floods was a little more difficult than earthquakes or storms for a parametric cat bond, an instrument where triggers depend on physical parametres of an event.



&#8220;The fundamental challenge is that you need data, and you need to have some history of that so that it can be modelled by various agencies,&#8221; Richardson said.



The World Bank has also recently offered vulnerable, low income countries the option of introducing clauses into their borrowing from the Washington-based lender that would allow governments to defer repayments for up to two years if they were hit by a severe natural disaster.



So far, seven countries have signed up to the so-called Climate Resilient Debt Clauses (CRDC) &#8211; Bahamas, Barbados, Belize, Grenada, St. Lucia, St. Vincent and the Grenadines and Montenegro.



&#8220;Some of these are evaluating whether they should activate this clause after hurricane Beryl but so far, no decision has been made from what we know,&#8221; said Richardson.



Beryl left a trail of devastation across several Caribbean islands earlier this month, destroying as many as 90% of homes in parts of Grenada and St. Vincent and the Grenadines.



(Reporting by Karin Strohecker and Marc Jones; Editing by Mark Potter)

106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report

World Bank eyes first ‘drought’ bond in next 12-18 months

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107405347-1713901590053-gettyimages-1467862508-r15207-fr-01-ge-01-scaled.jpeg" alt="" class="wp-image-508539" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107405347-1713901590053-gettyimages-1467862508-r15207-fr-01-ge-01-scaled.jpeg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107405347-1713901590053-gettyimages-1467862508-r15207-fr-01-ge-01-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107405347-1713901590053-gettyimages-1467862508-r15207-fr-01-ge-01-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107405347-1713901590053-gettyimages-1467862508-r15207-fr-01-ge-01-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107405347-1713901590053-gettyimages-1467862508-r15207-fr-01-ge-01-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107405347-1713901590053-gettyimages-1467862508-r15207-fr-01-ge-01-1536x1024.jpeg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Golden Horn and Bosphorus at sunset, Istanbul, Turkey Matteo Colombo | Digitalvision | Getty Images</figcaption></figure>



Turkey came out miles ahead of the rest of the world in an annual global wealth ranking — in a result that may come as surprising, given the country’s high levels of inflation.



“Türkiye stands out with a staggering growth of over 157% in wealth per adult between 2022 and 2023, leaving all other nations far behind,” Swiss bank UBS wrote in its Global Wealth Report 2024, using the local spelling for the country’s name.



The next-highest countries in terms of average wealth growth per adult were Russia and Qatar with nearly 20% and South Africa with just over 16%. In the U.S., average wealth per adult grew by nearly 2.5%.



Inflation in Turkey sits at nearly 72%, an eye-watering figure for the country’s 85 million people, many of whom have seen a dramatic drop in their purchasing power over the last several years. In the last five years, the Turkish lira has lost nearly 83% of its value against the dollar, and the currency trades at 33 lira to the greenback as of 09:07 a.m. London time on Wednesday.



But for Turks who own assets like homes, wealth has grown, as inflation pushes up the costs of those holdings.



The UBS report defines net worth or “wealth” as “the value of financial assets plus real assets (principally housing) owned by households, minus their debts.” In a call with journalists, some of the report’s authors broke down the relationship between inflation and wealth rises in Turkey.



“In certain ways, the high pace of inflation also helps explain why wealth has risen much much more in local currency terms, at least [more] than in other countries because it’s worth keeping in mind that wealth is measured in nominal terms,” Samuel Adams economist at UBS Global Wealth Management, told CNBC.



“If inflation is very high, what tends to happen is that if you have a real asset like housing, the house prices tend to rise in line with inflation, if not even faster,” he said. “So those people with have homeownership, or who have equities, which also tend to perform fairly well in those environments, they tend to see their wealth accumulate a bit faster.



“Of course, it doesn’t mean that everybody benefits to the same extent,” Adams added. “If you’re not in those assets, if your wage rises don’t keep pace with inflation, then, of course, it will be fairly negatively affected.”



The report also noted the “currency effect”, which is what changes wealth growth the most — local currency growth figures for wealth are often significantly different from those in dollar terms.



“Türkiye’s already exceptional growth of over 63% in USD &#8230; more than doubles to nearly 158% in Turkish lira,” it said. Other examples in the report included Japan, which in dollar terms has seen less than 2% average growth in wealth per adult in U.S. dollar terms between 2022-23, but in local currency that growth was 9%.



Evaluating countries’ average wealth growth between the years of 2008 and 2023, “the most dramatic evolution has taken place in Türkiye,” UBS wrote, “where average wealth per adult in this period has shot up by 1708% in local currency.”



UBS Global Wealth Management’s Chief Economist Paul Donovan pointed out that being asset-rich does not necessarily mean being cash-rich — in Turkey, this could actually be the opposite.



“In terms of living standards rather than wealth, it’s also important to remember that if you own a house, the value of your house has gone up, but your real wage may be negative at the same time. So you can be &#8230; asset rich and cash poor,” Donovan said last week.



“That’s certainly a possibility, where a lot of the stresses that have arisen in the Turkish economy over the last few years have come about because of negative real income,” he added, “not necessarily what’s happening on the asset side.”

107405347-1713901590053-gettyimages-1467862508-r15207-fr-01-ge-01

Wealth growth in Turkey, South Africa shows surprising expansion

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-820x429.jpg" alt="" class="wp-image-506011" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller serves a client with Kenya shilling notes at the cashier&#8217;s booth of a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, July 17 (Reuters) &#8211; Kenya&#8217;s shilling was stable on Wednesday as foreign exchange inflows from tea exports matched dollar demand, traders said.



At 0737 GMT, commercial banks quoted the shilling at 129.50/130.50 per dollar, the same as Tuesday&#8217;s close.



(Reporting by Hereward Holland; Editing by Alexander Winning)

HCVRNAVJRJMOJBUK4XOB7PEJGY

Kenyan shilling stable as FX inflows from tea exports match demand

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-820x547.jpg" alt="" class="wp-image-508505" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Rassem Zok &#8211; Chief Executive, Middle East, Standard Bank Group</figcaption></figure>



Africa has made significant progress in terms of infrastructure development, committing billions of dollars to improve its transportation, energy, water, and digital networks. This infrastructure boom is crucial for boosting economic growth, creating jobs, and reducing poverty across the continent. With the right investments and reforms, Africa can build the modern infrastructure needed to boost trade, create jobs, and transform the continent&#8217;s economic prospects.



Yet current investment still falls far short of demand. According to the African Development Bank, the continent has a $100 billion annual shortfall in infrastructure financing. This infrastructure gap is not only impacting lives today, but also significantly curtailing the continent’s potential for economic, entrepreneurial, and developmental progress. The African Union estimates that inadequate infrastructure has led to the reduction of national economic growth by 2% annually in most African countries and as much as 40% reduction in industrial productivity.



If we manage to close this gap, we unlock the immense potential of infrastructure – and especially sustainable infrastructure – to drive growth and development on the continent. There is a real desire amongst state-owned companies (SOCs) to do so, and an increasing awareness amongst investors of the alignment of interests that opportunities in African infrastructure represent.



We have noticed, in particular that Gulf Cooperation Council (GCC) countries have stepped up their investments in Africa as they look to diversify their own economies. The GCC&#8217;s strategic policy priorities and economic diversification interests align perfectly with the opportunity to support Africa&#8217;s development agenda, and the GCC is equipped with the technical expertise and financial resources necessary to bridge Africa’s investment gap through innovative public-private partnerships (PPPs).



Over the past decade, the GCC has emerged as a major investor across Africa, with a growing number of trade deals finalised that significantly benefit both regions. Dubai is increasingly establishing itself as the gateway to African investment. Investing in Africa, and developing relationships with SOCs and financial institutions, allows GCC nations to access new markets, expand business operations, and secure access to abundant natural resources. The GCC states generally have superb relationships with many of the 20 countries in which our Group has a universal presence, which is an important foundation for the development of effective PPPs and direct investment projects.



&nbsp;Iconic transactions of late include the acquisition of Imperial Logistics, a South African logistics operator, by DP World, the global infrastructure-led supply chain solutions provider based in Dubai. As a result of this transaction, DP World gained a stronger foothold in Africa and Imperial Logistics benefitted from DP World&#8217;s leading technology, global networks, and key trade-lane volumes. It’s a win for DP World and Imperial Logistics – the two are clients of the bank.



Another success has been our partnership with DP World to offer trade finance solutions to African SMEs, which will help in closing the gap in unmet demand for working capital on the continent. This partnership reflects our strategic vision of driving Africa’s growth, and is a demonstration of our commitment, as Africa’s largest bank, to the transition of financial services to platform-based ecosystems and to the improvement of client experiences.



ESG and the broad-scale sustainable impact of our work is a key focus area for Standard Bank, and this aligns with the appetitive for sustainability that we’ve seen from the UAE. UAE investors are sophisticated supporters of the vision of more circular economies and are making a demonstrable impact in enabling a just transition for the continent.



Spurred by the benefits of economic diversification, GCC countries are actively investing in high-growth sectors such as clean energy, manufacturing, and logistics, while also committing to sustainable development projects including food and water security. Against this backdrop, the opportunities in African infrastructure align seamlessly with the GCC states&#8217; multi-sectoral investment appetite.



We have, for the past four years, facilitated the State-Owned Company Investment Summit, which introduces large sovereign-owned companies to investors from the MENA region. Each year we record tangible, significant successes as a result of the summit.



It was as a result of last year’s Investment Summit that Standard Bank was able to facilitate a unique syndication facility for the Development Bank of Southern Africa in the UAE. The US$255 million facility was the first of its kind to be successfully accessed by a South African state-owned entity in the UAE and broader Middle East/North Africa (MENA) markets, representing a milestone for both DBSA and for South African fundraising initiatives in the UAE.



Standard Bank and UAE-based Mashreq were joint lead mandated arrangers in a deal which was oversubscribed, demonstrating significant market interest from UAE investors and the MENA broader region. The DBSA mandated Standard Bank to act as the mandated lead arranger to anchor and raise US dollar liquidity to diversify its global investor base.



Standard Bank is actively involved in supporting effective PPPs by demonstrating the economic value that derives from these projects, and through the rigorous governance structures that we’ve optimised. Risk is managed through an end-to-end process that takes deep cognisance of the value chains that are required for doing business in Africa, and which gives our partners comfort and security and the confidence to engage in these beneficial transactions.



There is nothing exceptional in terms of the risk projects face in Africa. What is unique is the degree to which local knowledge is able to ameliorate risk. In more mature markets, there isn’t the same degree of guidance required. In Africa, an experienced hand guiding the process is far more valuable.



Doing business in Africa requires an understanding of cultural sensitivities and experience as to what works. Africa is not a country: it is a continent made up of 54 disparate nations with unique operating environments. Our continental expertise is born of on-the-ground experience and a commitment to innovative, world-leading funding and risk-management solutions.



We believe in Africa, and we&#8217;re committed to its success. The vast proportion of our balance sheet is deployed in Africa. We have 50 000 experienced, knowledgeable staff who drive our return on equity. We have a universal presence in 20 African countries. We have offices in Dubai, Beijing, London and New York, and expect our new representative office to be opened in Egypt by year end. This will allow us to capitalise on the significant emergence of the Gulf–sub-Saharan-Africa–Egypt corridors, and further support our clients in those corridors.



The future looks bright for the cross-border opportunities available across Africa. As the largest bank in Africa, our largest stakeholder, in a sense, is the continent itself. That awareness drives our partnerships with multinationals, regional corporates, state structures and sovereign funds to enable cross-border flows – because they are critical catalysts of African growth and significant opportunities for value creation.

wmp-9109

Unlocking continental potential: The importance of local knowledge in African infrastructure investment

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1152" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w, 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-1-2-820x461.jpg 820w, 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" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><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, July 17 (Reuters)&nbsp;&#8211;&nbsp;The South African rand slipped against the dollar in early trade on Wednesday before the release of retail sales figures.



At 0625 GMT, the rand traded at 18.0725 against the dollar, about 0.2% weaker than its previous close.



Statistics South Africa will publish May retail sales data at 1100 GMT, shedding light on consumer spending patterns in one of Africa&#8217;s biggest economies.



Economists polled by Reuters predict retail sales will rise 0.7% year on year in May, after a 0.6% increase in April.



From 1200 GMT, mining and petroleum minister Gwede Mantashe will brief reporters on his plans for those sectors.



On Thursday investor attention will shift to an interest rate announcement by South Africa&#8217;s central bank and a speech in parliament by President Cyril Ramaphosa laying out priorities for the new coalition government.



(Reporting by Alexander Winning; Editing by Kim Coghill)

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

South African rand slips before retail sales data

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-400697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1-300x200.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Double exposure of coin stack with city background and world map, financial graph, world map and global network business concept idea, element by NASA.</figcaption></figure>



JOHANNESBURG, July 17 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Wednesday.



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



May retail sales data at 1100 GMT



Mining and petroleum minister briefs reporters on his department&#8217;s plans from 1200 GMT



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



The South African rand clawed back some losses on Tuesday, after tumbling on Monday, on rising expectations that the U.S. Federal Reserve will soon cut interest rates.



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



Gold hit a record and bonds rallied on Wednesday as markets prepared for global interest rates to fall, while stocks in Taiwan slipped after U.S. presidential candidate Donald Trump sounded lukewarm in his commitment to the island&#8217;s defence.



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



Wall Street stocks rose and the Dow Jones Industrial Average hit an all-time closing high on Tuesday after U.S. retail sales data supported the view that the Federal Reserve is approaching its easing cycle, reining in inflation while avoiding a recession.



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



Gold prices rose to an all-time peak on Wednesday, driven by mounting hopes of a U.S. interest rate cut in September after recent comments from Federal Reserve officials.



&#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; Bond rally since election gives fiscus a breather



&#8211; Presidential climate advisers propose way forward to streamline just transition financing



(Compiled by Alexander Winning)

South African Markets – Factors to watch on July 17

<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>



July 17 (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-global-markets">GLOBAL MARKETS</h2>



Gold hit a record and bonds rallied on Wednesday as markets prepared for global interest rates to fall, while stocks in Taiwan slipped after U.S. presidential candidate Donald Trump sounded lukewarm in his commitment to the island&#8217;s defence.



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



Oil prices were steady on Wednesday, with global benchmark Brent hovering near the one-month low it hit in the prior session, as signs of weakening demand growth in China clashed with the prospect of declining U.S. oil stockpiles.



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



The South African rand clawed back some losses on Tuesday, after tumbling on Monday, on rising expectations that the U.S. Federal Reserve will soon cut interest rates.



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



Kenya&#8217;s shilling slid lower on Tuesday, with traders saying there was a shortage of dollars on the market.



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



At least one person was killed in renewed anti-government protests across Kenya on Tuesday, a Reuters reporter said, as police clashed with demonstrators demanding that President William Ruto step down.



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



A Nigerian court on Tuesday adjourned a money laundering trial against cryptocurrency exchange Binance and two of its executives to Oct. 11, after the court&#8217;s annual holiday that starts next week.



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



Ghana&#8217;s cocoa marketing board Cocobod made a 2.3 billion cedi ($149.84 million) profit in 2022/23, helped by the restructuring of its debt, the west Africa nation&#8217;s auditor general said in a report obtained by Reuters on Tuesday.



((Compiled by Nairobi Newsroom))

African Markets – Factors to watch on July 17

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1600" height="1067" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE.webp" alt="" class="wp-image-418642" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE.webp 1600w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-300x200.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-820x547.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-135x90.webp 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-768x512.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-1536x1024.webp 1536w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Africa’s abundant renewable energy sources could make it a global hub for producing low-carbon hydrogen
Image: Unsplash/Anastasia Palagutina</figcaption></figure>



JOHANNESBURG, July 17 (Thomson Reuters Foundation)&nbsp;&#8211;&nbsp;When Shireen Gouws heard about a new hotline advertised in the community centre where she works in the small town of Laingsburg in South Africa, she was quick to spread the word.



Finally, she thought, people could have their say about renewable projects in their area and make sure they were reaping the benefits of the transition to green energy.



The toll-free hotline, available in 11 official South African languages, was launched on July 9 after a year-long pilot in Laingsburg and the town of Sutherland, where people could call in with complaints, queries and suggestions related to the wind farms operating in the area.



&#8220;Usually companies come and go and there is no engagement with the community, maybe a meeting once in a while. (Now) the community can express themselves if they are happy or unhappy about something,&#8221; Gouws, who works as a clerk at the community centre, told the Thomson Reuters Foundation in a phone interview.



The ENGAGE! hotline was launched by South African sustainable consulting company Cultiver following a year-long pilot with Enel Green Power, a renewable power unit of Italy&#8217;s largest utility firm, Enel Group.



Enel Green runs the Karusa and Soetwater wind farms in Laingsburg and Sutherland. Cultiver has worked with Enel on community projects in the area since construction on the wind farms began in 2019, and the hotline offers a new way of engaging with the public.



Enel did not immediately reply to a request for comment.



Cultiver now offers the hotline platform to renewable energy, infrastructure and mining projects across southern Africa.



Cultiver&#8217;s aim is to ensure residents of remote towns where solar and wind farms are being installed are included in the dialogue about how these green projects can also benefit locals, said Fezeka Stuurman, the head of Cultiver.



ENGAGE! allows community members to put their grievances directly to project owners and local government, if relevant, to ensure their concerns are dealt with urgently and minimise the risk of social unrest, Stuurman added.



&#8220;We decided that we needed something for communities to reach us directly and in a way that would be dignified, private and insightful,&#8221; Stuurman told the Thomson Reuters Foundation.



As a result of the pilot project, Cultiver helped facilitate the drilling of boreholes for drought-stricken areas, the creation of a value-chain workshop for businesses interested in working with Enel, and the organisation of a registration event for small businesses to take part in procurement, Stuurman said.



Richard Halsey, a policy advisor on the South African team at the International Institute for Sustainable Development (IISD), praised the hotline&#8217;s free access and inclusivity for community members.



But the fact that it is funded by project owners could mean some renewable energy and mining companies or infrastructure developers may choose not to use the hotline as it is an additional, optional expense, he said.



Its effectiveness could also be limited as community members are only invited to engage once the project has started, rather than giving them an initial say in what kind of project they would like to see in their area, Halsey added.



&#8220;Effective communication across communities isn&#8217;t just a &#8216;nice to have&#8217; bonus for developers,&#8221; said Halsey.



&#8220;Real involvement and interaction can empower decision-making on both sides &#8230; smoothing the way towards clean energy deployment and helping avoid frustrating delays and opposition,&#8221; he said in emailed comments.



<h2 class="wp-block-heading" id="h-fighting-distrust">FIGHTING DISTRUST</h2>



South Africa is among the world&#8217;s top 15 greenhouse gas emitters &#8211; and the leading emitter in Africa. About 80% of its carbon emissions, and some 90,000 jobs, are linked to coal.



South Africa has secured $676 million in grants from rich nations to shift from coal to clean energy sources such as wind and solar power.



The country&#8217;s sweeping coastline, vast semi-desert and near all-year-round sun are seen by many renewable energy investors as offering impressive potential for solar and wind projects.



South Africa already has in place a 13-year-old programme that procures clean energy from independent power producers (IPPs) to feed into the national grid, while aiming to empower local communities by giving them some of the profits back.



IPP policy states that the power producers should prioritise socioeconomic development within a 50-km (31-mile) radius of the project site.



More than 6,000 megawatts of generation capacity, primarily from wind and solar, have already been granted to bidders under the IPP scheme, according to the U.S. International Trade Administration (ITA).



But research has shown that the money from these projects does not always trickle down to the surrounding communities, building a culture of mistrust when new projects move in.



The hotline is meant to combat this trend. It is advertised through pamphlets and community ambassadors from Cultiver, who talk directly to residents.



Gouws said community members told her that they used the hotline to understand how the wind farm would support the community, and to complain if the funding processes were not clear.



<h2 class="wp-block-heading" id="h-inform-and-be-informed">&#8216;INFORM AND BE INFORMED&#8217;</h2>



In the past year the platform, which is also available via WhatsApp, received more than 150 calls from residents of Sutherland and Laingsburg, which together are home to some 12,000 people.



Around 50% of the calls were about funding and financial support for community projects under the IPP policy, 20% were grievance-related, 20% focused on training and support for small businesses, and the rest were general inquiries, Cultiver said.



The response time for grievances is about 10-20 working days, depending on the complexity, Stuurman said.



&#8220;Communities called us directly saying &#8230; we need a counsellor, we need a school psychologist, we need a safe house,&#8221; Stuurman said.



A number of calls were about a contractor who was allegedly underpaying workers and failing to supply necessary protective equipment, she said. Following guidance received via the ENGAGE! platform, the workers submitted a collective petition and a new contractor was appointed.



Gouws said students, whose bursaries were being funded through Enel&#8217;s community profit-sharing schemes, used the hotline to follow up on payment delays, resolving the issue almost immediately.



The platform was a good start to allow &#8220;quieter voices to share concerns &#8230; to inform and be informed,&#8221; said Allistar Gibbons, the manager of community services in the Karoo Hoogland Municipality in the Northern Cape, where Sutherland is.



<h2 class="wp-block-heading" id="h-opportunity-to-learn">&#8216;OPPORTUNITY TO LEARN&#8217;</h2>



Community support also has a financial benefit, said Stuurman, who has witnessed protests and stoppages halt various projects she has worked on in the past decade.



&#8220;When you&#8217;re investing billions of rands into an asset, the immediate risk is around having that asset jeopardised in some shape or form,&#8221; she said.



South Africa&#8217;s economy was built on extractive mining industries, including coal, gold and diamonds, that made use of Black, migrant labour to enrich the white minority during colonial and apartheid years.



The renewable industry offers an opportunity to learn from past practices, said Holle Wlokas, co-founder of the Initiative for Social Performance in Renewable Energy (INSPIRE) non-profit.



Wlokas said ENGAGE! represented an &#8220;exciting opportunity&#8221; to keep investing in community relationships, both via the hotline and in person.



&#8220;We do see in the renewable sector, at times, community narratives comparing renewables with the mining industry,&#8221; said Wlokas in a phone interview.



&#8220;Quite a common saying is that the wind and solar projects steal the diamonds from the sky as the mining sector stole the diamonds out of the earth,&#8221; she said.



&#8220;And that experience of extraction and exploitation is an important one to listen very carefully to.&#8221;



(Reporting by Kim Harrisberg in Johannesburg. Editing by Clar Ni Chonghaile. The Thomson Reuters Foundation is the charitable arm of Thomson Reuters.)

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