
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="521" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-820x521.jpg" alt="" class="wp-image-516586" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-820x521.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-768x488.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-1536x976.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller handles U.S. dollar banknotes and Kenya shilling banknotes inside the cashier&#8217;s booth at a forex exchange bureau in downtown Nairobi, Kenya, February 16, 2024. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



<p>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.</p>



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



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



<p>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.</p>



<p>&#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.</p>



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



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



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



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



<p>&#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.</p>



<p>&#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.</p>



<p>&#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.</p>



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



<p>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.</p>



<p>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.</p>



<p>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.</p>



<p>&#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.</p>



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



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



<p>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.</p>



<p>&#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.</p>



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



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



<p>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.</p>



<p>&#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.</p>



<p>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.</p>



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


RLVCCF47LVIWPJR4O2PPITYMVI

Kenya’s currency seen strengthening, Ghana’s steady


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-820x429.jpg" alt="" class="wp-image-516568" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via Reuters</figcaption></figure>



<p>NAIROBI, Aug 8 (Reuters)&nbsp;&#8211;&nbsp;Police fired tear gas to clear pockets of anti-government demonstrators from the centre of Kenya&#8217;s capital Nairobi on Thursday, as their protest movement sought to capitalise on earlier concessions and compel President William Ruto to resign.</p>



<p>The &#8220;Nane Nane&#8221; march, meaning &#8220;eight eight&#8221; in reference to the date, follows weeks of similar pro-reform protests that saw Ruto scrap planned tax hikes and overhaul his cabinet.</p>



<p>The youth-led nationwide protests began peacefully in June before turning violent, and more than 50 people have been killed.</p>



<p>Shops were shut and streets left deserted after riot police set up road blocks and threw tear gas canisters to disperse handfuls of protesters across Nairobi&#8217;s financial district. Police fired tear gas at one group of a dozen protesters chanting &#8220;Ruto must go&#8221;, a Reuters journalist reported.</p>



<p>A lone rag-picker was seen gathering up some of the canisters, occasionally wincing as some still appeared to be hot.</p>



<p>At least three journalists were wounded when police fired tear gas canisters close to them, the International Press Association of East Africa, which represents hundreds of journalists in the region, said on X.</p>



<p>In what has been the biggest crisis of his two years in office, Ruto bowed to pressure and shelved the new taxes in June after some demonstrators briefly stormed parliament.</p>



<p>Ruto fired his entire cabinet apart from the foreign minister last month, a victory for activists and protesters who had demanded sweeping changes.</p>



<p>Ruto then named opposition members to his cabinet, but activists criticised the move as a corrupt deal and reiterated demands that he resign. They called for far-reaching reforms to tackle corruption and for regional county and national governments to improve service delivery.</p>



<p>Ruto has said the new cabinet reflects national unity and will address the demands of the protest movement. He has promised to investigate alleged abuses by the police during demonstrations but has broadly defended their conduct.</p>



<p>Ruto&#8217;s reconstituted cabinet was sworn in on Thursday.</p>



<p>&#8220;Where Kenya is today, while competition is healthy and good, there is a moment where the interest of a nation is greater than the interest of a political formation,&#8221; he said in a speech after the ministers were sworn in.</p>



<p>The protests have no official leaders and have been mostly organised online.</p>



<p>Ruto has stepped up criticism of them after initially praising demonstrators for being peaceful.</p>



<p>&#8220;We are a proudly democratic country, based on the firm foundation of the rule of law. There is no room for anarchy, chaos and violence,&#8221; Ruto said in Embu County on Wednesday.</p>



<p>The Kenyan police asked people to avoid crowded areas ahead of Thursday&#8217;s protests and said it was deploying adequate personnel across the country.</p>



<p>(Reporting by Bhargav Acharya, Humphrey Malalo, Nelson Aruya and Jeff Kahinju, Editing by Hereward Holland, William Maclean)</p>


https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4

Kenya police use tear gas to clear pockets of protesters in Nairobi


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CORIUWLHAJI4LNBBJBT32ZAVTI.jpg" alt="" class="wp-image-422769" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CORIUWLHAJI4LNBBJBT32ZAVTI.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CORIUWLHAJI4LNBBJBT32ZAVTI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CORIUWLHAJI4LNBBJBT32ZAVTI-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Kenya Central Bank Governor Patrick Njoroge displays  Kenyan shilling bank notes during a news conference at the Central Bank in Nairobi, Kenya, June 3, 2019. REUTERS/Baz Ratner</figcaption></figure>



<p>NAIROBI, Aug 8 (Reuters) &#8211; Kenya&#8217;s shilling was stable on Thursday, with dollar inflows from remittances and non-governmental organisations meeting importer demand.</p>



<p>At 0810 GMT, commercial banks quoted the shilling at 128.50/129.50 per dollar, the same level it closed at on Wednesday.</p>



<p>(Reporting by George Obulutsa, Editing by Bhargav Acharya)</p>


Kenya Central Bank Governor Patrick Njoroge displays the newly designed Kenyan shilling bank notes during a news conference at the Central Bank in Nairobi

Kenyan shilling stable; remittances help meet importer demand


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1439" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-scaled.jpg" alt="" class="wp-image-424954" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-820x576.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-768x540.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-1536x1079.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A street money changer counts South African Rands in Harare, Zimbabwe,  file.  REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



<p>JOHANNESBURG, Aug 8 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand was stable in early trade on Thursday, as markets traded cautiously ahead of U.S. jobless claims data that could be a major driver globally.</p>



<p>At 0805 GMT, the rand traded at 18.41 against the dollar, the same level it closed at on Wednesday.</p>



<p>South African assets including the rand plunged on Monday, caught up in a global sell-off linked to U.S. recession worries. They have staged a recovery since, but analysts caution that sentiment is still fragile.</p>



<p>&#8220;Investors are currently highly sensitive to any negative news that could hint at a (U.S.) recession,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.</p>



<p>&#8220;Currency and commodity markets are keeping within recent ranges ahead of today&#8217;s U.S. jobless claims number with traders in cautious mode,&#8221; he added.</p>



<p>At 1100 GMT Statistics South Africa will publish June manufacturing output figures ZAMAN, ZAMFG. Analysts polled by Reuters predict a 0.9% contraction in year-on-year terms and a 1.3% expansion month-on-month.</p>



<p>On the Johannesburg Stock Exchange, the blue-chip Top-40 index traded about 0.5% weaker in early trade.</p>



<p>South Africa&#8217;s benchmark 2030 government bond was also weaker in early deals, with the yield up 3.5 basis points to 9.415%.</p>



<p>(Reporting by Tannur Anders; Editing by Alexander Winning)</p>


FILE PHOTO: A street money changer counts South African Rands in Harare

South African rand flat, global focus on US jobless claims


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-820x573.jpg" alt="" class="wp-image-516475" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-768x536.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-1536x1072.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Ethiopian Prime Minister Abiy Ahmed speaks in parliament during a session to approve the country&#8217;s 2024/25 budget, in Addis Ababa, Ethiopia, July 4, 2024. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



<p>ADDIS ABABA, Aug 8 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s securities exchange is expected to start operations in October, its chief executive was quoted as saying by state-affiliated media on Thursday.</p>



<p>The establishment of a bourse is part of Prime Minister Abiy Ahmed&#8217;s push to open up the country &#8211; which is heavily controlled by the state &#8211; to greater private investment.</p>



<p>All human resource and technological requirements for the bourse will be in place by October, the bourse&#8217;s CEO Tilahun Esmael Kassahun was quoted as saying by Fana Broadcasting.</p>



<p>Abiy said in February that the government was discussing the&nbsp;sale of 10% of state-owned&nbsp;telecoms company Ethio Telecom via the stock exchange.</p>



<p>Ethio Telecom held a monopoly before a consortium led by Kenya&#8217;s Safaricom won the country&#8217;s first private telecoms licence and started commercial operations in 2022.</p>



<p>Ethiopia&#8217;s economy is still grappling with the legacy of being a command economy for decades, but Abiy&#8217;s push since 2018 towards more private sector involvement has been notable for being more ambitious than previous attempts at opening up.</p>



<p>In late July,&nbsp;Ethiopia floated its currency&nbsp;ahead of securing International Monetary Fund support, a step that needed to happen before a long-delayed debt restructuring could begin.</p>



<p>(Writing by George Obulutsa; Editing by Edwina Gibbs)</p>


FILE PHOTO: Ethiopia’s Parliament approves 2024/25 fiscal year budget

Ethiopia’s securities exchange to start operations in October – media


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



<p>JOHANNESBURG, Aug 8 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, company announcements, equity and currency market moves may affect South African markets on Thursday.</p>



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



<p>South Africa&#8217;s manufacturing output for June will be released ZAMFG, ZAMAN.</p>



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



<p>Dutch technology investor Prosus and its South African parent group Naspers said on Thursday that Basil Sgourdos will retire as chief financial officer of both firms effective on Nov. 30.</p>



<p>Astral Foods said on Thursday that its CEO Chris Schutte will retire on Jan. 30, 2025, having led the company for 16 years.</p>



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



<p>The South African rand gained on Wednesday as a rebound in global stock markets boosted risk sentiment and investors awaited U.S. labour market data later this week for hints on the future interest rate path of the world&#8217;s biggest economy.</p>



<p>On the Johannesburg Stock Exchange, the blue-chip Top-40 index last traded up about 1.2%. South Africa&#8217;s benchmark 2030 government bond was unchanged, with the yield at 9.375%.</p>



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



<p>Asian stock markets bounced between gains and losses on Thursday, while the yen and U.S. bonds attempted to rebound, as global investors struggled to find their footing in a wild week for markets.</p>



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



<p>U.S. stocks ended lower on Wednesday, with the Nasdaq falling 1% as technology shares declined and weak demand in a 10-year Treasury auction stoked investor jitters in choppy trade..N</p>



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



<p>Prices of safe-haven gold edged higher on Thursday, supported by Middle East tensions and optimism surrounding U.S. rate cuts, while traders awaited economic data for clues on the Federal Reserve&#8217;s policy trajectory.</p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



<h2 class="wp-block-heading" id="h-business-day">BUSINESS DAY</h2>



<p>&#8211; World Bank urges SA to overhaul its trade</p>



<p>&#8211; Big foreign inflows into SA bonds</p>



<p>(Compiled by Tannur Anders)</p>


istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Aug 8


<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>



<p>NAIROBI, Aug 8 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.</p>



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



<p>Tech shares led a selloff in stock markets around Asia, while the yen and U.S. bonds rebounded, as global investors struggled to find their footing in a wild week for markets.</p>



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



<p>Oil prices edged higher on Thursday for the third straight session after government data showed a steep draw in U.S. crude stockpiles, rebounding from multi-month lows touched this week.</p>



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



<p>The South African rand gained on Wednesday as a rebound in global stock markets boosted risk sentiment and investors awaited U.S. labour market data later this week for hints on the future interest rate path of the world&#8217;s biggest economy.</p>



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



<p>Nigeria&#8217;s central bank said on Wednesday it has sold $876.26 million at 1,495 naira to the dollar at its first retail auction for end users, firmer than where the currency is trading at on the official market.</p>



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



<p>Kenya&#8217;s shilling was stable against the U.S. dollar on Wednesday, LSEG data showed.</p>



<h2 class="wp-block-heading" id="h-uganda-central-bank-rate">UGANDA CENTRAL BANK RATE</h2>



<p>Uganda&#8217;s central bank reduced its key lending rate by 25 basis points to 10.00% &lt;UGCBIR=ECI> on Wednesday, saying a recovery in the shilling currency had led to an improvement in the inflation outlook.</p>



<h2 class="wp-block-heading" id="h-kenya-central-bank">KENYA CENTRAL BANK</h2>



<p>Kenya&#8217;s central bank governor said on Wednesday that the country&#8217;s shilling currency had remained stable in the face of protests sparked by a plan to hike taxes and should shrug off recent credit rating downgrades.</p>



<h2 class="wp-block-heading" id="h-south-sudan-petroleum">SOUTH SUDAN PETROLEUM</h2>



<p>Malaysian state energy firm Petroliam Nasional (Petronas) said it will withdraw from South Sudan as it tailors its investment strategy to business conditions.</p>



<h2 class="wp-block-heading" id="h-ethiopia-forex">ETHIOPIA FOREX</h2>



<p>Ethiopia&#8217;s central bank said the weighted average exchange rate at a special foreign exchange auction on Wednesday was 107.9 birr per U.S. dollar. </p>



<h2 class="wp-block-heading" id="h-comoros-politics">COMOROS POLITICS</h2>



<p>Comoros President Azali Assoumani has granted sweeping new powers to his son, Nour El Fath, allowing him to intervene at all stages of government decision making, after putting him in charge of coordinating government affairs last month.</p>



<h2 class="wp-block-heading" id="h-angola-petroleum">ANGOLA PETROLEUM</h2>



<p>Angola&#8217;s Etu Energias plans to hold an initial public offering in 2026, its chief executive said on Wednesday, weeks after it finalised a $400 million deal to buy Galp Energia&#8217;s Angolan offshore stakes.</p>



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



<p>Zambia&#8217;s proposed minerals regulation law could deter investment and deliver a &#8220;fatal blow&#8221; to its goal of raising annual copper output to 3 million metric tons, two mining bodies said on Wednesday.</p>



<p>((Compiled by Nairobi Newsroom))</p>


World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Aug 8


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107184396-16747379042023-01-26t120649z_723665645_rc27yy9kye44_rtrmadp_0_thailand-economy-820x461.jpeg" alt="" class="wp-image-516437" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107184396-16747379042023-01-26t120649z_723665645_rc27yy9kye44_rtrmadp_0_thailand-economy-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107184396-16747379042023-01-26t120649z_723665645_rc27yy9kye44_rtrmadp_0_thailand-economy-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107184396-16747379042023-01-26t120649z_723665645_rc27yy9kye44_rtrmadp_0_thailand-economy-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107184396-16747379042023-01-26t120649z_723665645_rc27yy9kye44_rtrmadp_0_thailand-economy-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107184396-16747379042023-01-26t120649z_723665645_rc27yy9kye44_rtrmadp_0_thailand-economy-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107184396-16747379042023-01-26t120649z_723665645_rc27yy9kye44_rtrmadp_0_thailand-economy.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A bank employee count China’s renminbi (RMB) or yuan notes next to U.S. dollar notes at a Kasikornbank in Bangkok, Thailand, January 26, 2023.<br>Athit Perawongmetha | Reuters</figcaption></figure>



<p>BEIJING — Chinese companies seeking growth from exports face a new challenge: a strengthening yuan.</p>



<p>The “offshore” yuan traded in Hong Kong surged Monday against the U.S. dollar to its strongest level for 2024 — below 7.1 — before weakening slightly to around 7.18 as of Wednesday afternoon, according to Wind Information.</p>



<p>The sharp moves came amid a global stock market sell-off as investors reassessed their outlook for the U.S. economy and potential interest rate cuts. High rates have bolstered the U.S. dollar and related assets.</p>



<p>A strong greenback has also helped keep the Chinese yuan weak, which in turn kept Chinese exports competitively priced abroad. After steadily weakening in the first half of the year, the offshore yuan has strengthened against the U.S. dollar over the last month.</p>



<p>Many trade companies, especially smaller ones, have “currently adopted a strategy of ‘preferring not to take orders rather than take loss-making orders,’” Winnie Wang, president of the Shenzhen Cross-Border E-Commerce Association, said Tuesday in Chinese, according to a CNBC translation.</p>



<p>She noted the case of one such company, which made 20 million yuan ($2.8 million) in revenue during the yuan’s weakening during the first half of the year, allowing it to raise employee salaries. But she said the company did not win a single order in July because the stronger yuan forced it to repeatedly raise its prices.</p>



<p>Ryan Zhao, director at an export-focused company called Jiangsu Green Willow Textile, said Tuesday that recent fluctuations in foreign exchange will cut into about 2% of profits on accounts receivable this month.</p>



<p>“We are concerned that a prolonged appreciation of the yuan will lead to price increases by Chinese suppliers, which will affect the export businesses,” he said in Chinese, according to a CNBC translation. He said the company’s way of dealing with exchange rate fluctuations is to negotiate a middle exchange rate with the customer.</p>



<p>China reported slower-than-expected growth in U.S. dollar-denominated exports for July on Wednesday, while imports surprised with a better-than-expected increase.</p>



<p>Exports have stood out as a bright spot as China’s economic growth slows. Many local companies from automakers to e-commerce players have accelerated overseas expansion plans to capture opportunities for faster growth abroad.</p>



<p>That also means Chinese companies are now more exposed to currency fluctuation risks. China’s foreign exchange regulator has in the last two years published guides on how businesses can mitigate such risks.</p>



<p>“Apart from geopolitical reasons, Chinese companies are increasingly focused on hedging currency risk because they are localizing operations globally – which makes their operations more complex than they used to be,” said Chris Pereira, president and CEO of consulting firm iMpact.</p>



<p>“In addition to hedging against traditional USD/RMB fluctuations, Chinese cross-border e-commerce companies are increasingly also hedging against the Euro, British Pound, and Japanese Yen,” he said Tuesday. Cross-border e-commerce refers to online shopping platforms selling products between different countries.</p>



<p>Pereira said many of his clients work with fintech companies such as Airwallex and LianLian Pay. “Larger Chinese cross-border e-commerce companies generally work with banks to secure forward contracts or options, allowing them to lock in exchange rates for future transactions,” he said.</p>



<h2 class="wp-block-heading" id="h-changing-expectations"><a></a>Changing expectations</h2>



<p>Global businesses and investors have increased their focus on currency risk in recent days. Many institutional investors on Monday started to unwind a popular ”carry trade” in the Japanese yen, which had played an attractive role in global asset allocation until the Bank of Japan raised interest rates last month to their highest since 2008.</p>



<p>The Chinese yuan has held a similarly attractive role due to low interest rates in China. But several analysts expected that could change.</p>



<p>“A large amount of foreign currency is awaiting settlement” against the yuan, Zhou Ji, macro FX analyst at Nanhua Futures, said in Chinese translated by CNBC.</p>



<p>Zhou noted lack of willingness to settle earlier in the year due to widespread expectations that the yuan would weaken against the U.S. dollar, a view partly supported by the People’s Bank of China’s latest interest rate cuts.</p>



<p>Fast-fashion giant Shein and PDD Holdings’ Temu are two of the most well-known examples of Chinese cross-border e-commerce companies. Many small businesses — which may have their own factories in China — have entered the industry to sell on TikTok, Amazon.com or platforms run by Alibaba.</p>



<p>Chinese policymakers have also encouraged the development of cross-border e-commerce by supporting special economic zones and overseas warehouse construction.</p>



<p>Official data claim explosive growth in the industry, with more than 120,000 cross-border e-commerce entities in China as of June.</p>



<p>Such online international commerce grew by 10.5% year-on-year in the first half of the year to account for nearly 5.8% of total trade, according to CNBC calculations of official data. That’s up slightly from a share of about 5.7% in the first quarter. A breakdown by exports and imports for the first half of the year was not immediately available.</p>



<p>Wang from the Shenzhen Cross-Border E-Commerce Association pointed out that large Chinese companies have tended to negotiate deals with business partners to mitigate currency risks.</p>



<p>For many smaller businesses, their expansion overseas has been part of an effort to move capital outside China, making them less affected by the latest currency moves, said Chris Sun, founder and CEO of BrandPal, an AI-based marketing company focused on short video monetization. The company claims its backers include Plug and Play Tech Center.</p>



<p>He said the companies, many newly registered in the last year or two, have focused on spending yuan within China while making U.S. dollars via overseas sales.</p>


107184396-16747379042023-01-26t120649z_723665645_rc27yy9kye44_rtrmadp_0_thailand-economy

China’s exporters enjoyed the benefits of a weak yuan. Now that’s changing and cutting into profits


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="565" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/5D3DBSOEX5LDZFG3HNK6BULCXQ.jpg" alt="" class="wp-image-516192" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/5D3DBSOEX5LDZFG3HNK6BULCXQ.jpg 1080w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/5D3DBSOEX5LDZFG3HNK6BULCXQ-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/5D3DBSOEX5LDZFG3HNK6BULCXQ-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/5D3DBSOEX5LDZFG3HNK6BULCXQ-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/5D3DBSOEX5LDZFG3HNK6BULCXQ-768x402.jpg 768w" sizes="auto, (max-width: 1080px) 100vw, 1080px" /><figcaption class="wp-element-caption">People wearing face masks walk past the Johannesburg Stock Exchange in Sandton, South Africa, November 9, 2020. REUTERS/Siphiwe Sibeko/ file photo</figcaption></figure>



<p>JOHANNESBURG, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Johannesburg Stock Exchange Ltd (JSE) posted a slight fall in half-year profit on Wednesday, impacted by lower equity trading activity in a challenging economic environment.</p>



<p>The operator of Africa&#8217;s biggest bourse by market capitalisation said headline earnings per share (HEPS) inched 0.2% lower to 606 cents in the six months ended June 30. HEPS is the main measure of corporate profit in South Africa.</p>



<p>Profit after tax was flat at 492.7 million rand ($27 million), it said.</p>



<p>Revenue grew 4.3% to 1.5 billion rand, supported by its diversified business segments and asset classes, whose growth offset the 12% decline in equity trading. Most businesses reported growth in revenue for the period.</p>



<p>&#8220;These results reflect our segment and asset class diversification as well as strategic progress in growing non-trading income, which now represents 39% of total operating income,&#8221; said group CEO Leila Fourie.</p>



<p>After a slow start to 2024, the value of equities traded on the JSE started to recover in the second quarter, with the trend extending into July following South Africa&#8217;s May elections which resulted in a new unity government including the pro-business Democratic Alliance party.</p>



<p>&#8220;Higher trading activity has been reflective of positive market sentiment stemming from the outcome of the national elections and the formation of the government of national unity (GNU),&#8221; she added.</p>



<p>The Johannesburg All-share index is up 5.4% year-to-date, hitting its highest level on Aug. 1 at 82,881 points, while the banks index, which was the most buoyed by the cautious optimism, is 12.6% up this year.</p>



<p>The bourse is also starting to attract more listings this year after a wave of delistings from 2020.</p>



<p>It has so far had two listings on its main board, second-hand vehicle trader WeBuyCars and poultry producer Rainbow Chicken. Pick n Pay&#8217;s discount grocery retailer Boxer is expected to list soon.</p>



<p>Medical cannabis company Cilo Cybin also listed on the exchange&#8217;s Alternative Echange for smaller companies as a Special Purpose Acquisition Vehicle (SPAC).</p>



<p>($1 = 18.3538 rand)</p>



<p>(Reporting by Sfundo Parakozov; Editing by Emelia Sithole-Matarise)</p>


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Johannesburg Stock Exchange’s half-year profit slips on lower equity trading


<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>



<p>KAMPALA, Aug 7 (Reuters) &#8211; Uganda&#8217;s central bank reduced its key lending rate by 25 basis points to 10.00% on Wednesday, saying a recovery in the shilling currency had led to an improvement in the inflation outlook.</p>



<p>The shilling hit a record low in late February, but has risen by more than 6% against the U.S. dollar since then, meaning there is less risk that a recent rise in inflation will prove to be persistent.</p>



<p>Inflation rose to 4.0% year-on-year in July, still below the central bank&#8217;s 5% medium-term target but up from 2.8% in January.</p>



<p>&#8220;The MPC (Monetary Policy Committee) noted that &#8230; the adverse impact of the past external shocks has abated and there has been some progress in moderating risks of inflation persistence,&#8221; Central Bank Deputy Governor Michael Atingi-Ego told a news conference.</p>



<p>&#8220;The inflation projection has been revised slightly downwards relative to the June 2024 forecast &#8230; largely due to a lesser depreciated shilling exchange rate.&#8221;</p>



<p>Atingi-Ego attributed the recent uptick in inflation to sectors such as passenger transport, accommodation, sports and recreation.</p>



<p>He said the Bank of Uganda expected inflation to continue rising moderately in the next four months due to seasonal factors, but to stabilise around the target of 5% by the first quarter of 2025.</p>



<p>At the bank&#8217;s last monetary policy meeting in June it expected inflation to only stabilise around 5% in the second half of next year.</p>



<p>Atingi-Ego noted there had been a pickup in Uganda&#8217;s economic growth, which averaged 6.7% in annual terms in the last two quarters of fiscal year 2023/24 compared with 5.3% growth in the previous two quarters.</p>



<p>The bank&#8217;s growth forecast for the 2024/25 fiscal year that started in July remains unchanged, at between 6.0% and 6.5%.</p>



<p>&#8220;It was appropriate to reduce slightly the degree of monetary policy restrictiveness,&#8221; Atingi-Ego said.</p>



<p>(Writing by Bhargav Acharya; Editing by Aexander Winning and David Holmes)</p>


GettyImages-924883576-1

Uganda cuts key rate as shilling recovery helps inflation outlook


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-scaled.jpg" alt="" class="wp-image-516139" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: A truck exits the mine after collecting ore from 516 metres below the surface at the Chibuluma copper mine in the Zambian copperbelt  region, January 17, 2015. REUTERS/Rogan Ward/File Photo</figcaption></figure>



<p>LUSAKA, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;Zambia&#8217;s proposed minerals regulation law could deter investment and deliver a &#8220;fatal blow&#8221; to plans to raise annual copper output to 3 million tons, two mining bodies said on Wednesday.</p>



<p>Zambia&#8217;s government has proposed a new Minerals Regulation Commission Bill, which seeks to &#8220;regulate and monitor the development and management of mineral resources&#8221; in Africa&#8217;s second-biggest copper producer.</p>



<p>But Zambia&#8217;s Chamber of Mines (ZCM), the main mining industry body, and the Association of Zambian Mineral Exploration Companies (AZMEC) said in a joint statement some parts of the proposed law &#8220;will drive up the perception of investment risk in Zambia&#8221;.</p>



<p>&#8220;Unfortunately, due to&#8230;the prospect of forced &#8216;free carry&#8217; acquisitions by the state of stakes in new ventures, this Bill will seriously undermine property rights,&#8221; the mining industry bodies said.</p>



<p>&#8220;The Bill also grants unaccountable and arbitrary discretionary decision making powers to individual regulators, which present obvious future corruption risks,&#8221; they added.</p>



<p>Zambia&#8217;s mines ministry was not immediately available to comment.</p>



<p>President Hakainde Hichilema&#8217;s government, elected in 2021, has sought to repair the country&#8217;s investment reputation and ramp up copper production, which was impacted by the seizure of Konkola Copper Mines from Vedanta by the previous administration in 2019.</p>



<p>The new government has handed the company back to Vedanta as it pushes to raise copper output to 3 million tons per year within the next decade to take advantage of growing demand for the metal, which is key to the global shift to cleaner sources of energy.</p>



<p>Copper output slumped to 698,000 tons in 2023 from 763,000 tons the previous year, data from the Zambia Chamber of Mines showed.</p>



<p>Mining majors such as Barrick Gold and First Quantum Minerals are investing billions of dollars into their Zambian copper assets.</p>



<p>The United Arab Emirates&#8217; International Resources Holding (IRH) has pledged to invest $1.1 billion to expand output at Mopani Copper Mines after buying a 51% stake in the company previously owned by Glencore.</p>



<p>(Reporting by Chris Mfula; Writing by Nelson Banya; Editing by Angus MacSwan)</p>


A truck exits the mine after collecting ore underground at the Chibuluma copper mine

Zambia’s proposed mining law bad for investment, miners say


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="425" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg" alt="" class="wp-image-498541" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-300x177.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-152x90.jpg 152w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Kenya shilling coins and notes are pictured inside a cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



<p>NAIROBI, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s central bank governor said on Wednesday that the country&#8217;s shilling currency had remained stable in the face of protests sparked by a plan to hike taxes and should shrug off recent credit rating downgrades.</p>



<p>Governor Kamau Thugge was speaking a day after the Central Bank of Kenya cut its benchmark lending rate by 25 basis points, the first cut in more than four years.</p>



<p>It was the first interest rate decision since President William Ruto bowed to pressure from protesters, scrapping the tax hikes and overhauling his cabinet amid calls for him to resign.</p>



<p>Rating agencies Moody&#8217;s and Fitch downgraded Kenya&#8217;s sovereign ratings following the withdrawal of the tax measures, saying the move could complicate the East African country&#8217;s fiscal consolidation efforts.</p>



<p>&#8220;We don&#8217;t expect that there&#8217;ll be much impact (on the shilling) &#8230; because of these downgrades,&#8221; Thugge said, adding that the central bank was seeing more foreign exchange coming into the economy than going out.</p>



<p>The shilling is up more than 20% against the dollar this year, after a rally that started in February when the government issued a new $1.5 billion Eurobond to buy back most of a $2 billion bond whose maturity in June had unnerved investors.</p>



<p>The country currently has no plans for another $1 billion bond buyback before the end of the year, the governor said, despite the World Bank saying in June this was possible.</p>



<p>&#8220;What we are trying as much as possible is trying to talk to our development partners, both bilaterals as well as multilaterals, to get additional external financing,&#8221; Thugge said.</p>



<p>Kenya has not made a decision on its future engagements with the International Monetary Fund after the current lending programme agreed in 2021 expires next year, the governor added.</p>



<p>The Central Bank Rate was reduced to 12.75% on Tuesday after inflation fell to 4.3% year on year in July, below the midpoint of the government&#8217;s preferred range of 2.5%-7.5%.</p>



<p>Kenya&#8217;s economy is projected to grow 5.5% in 2025, at a similar rate to this year&#8217;s 5.4% growth, Thugge said.</p>



<p>(Reporting by Bhargav Acharya and George Obulutsa; Editing by Alexander Winning, William Maclean)</p>


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Kenya currency should shrug off rating downgrades, cenbank governor says


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="425" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg" alt="" class="wp-image-498541" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-300x177.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-152x90.jpg 152w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Kenya shilling coins and notes are pictured inside a cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



<p>NAIROBI, Aug 7 (Reuters) &#8211; Kenya&#8217;s shilling was stable against the U.S. dollar on Wednesday, LSEG data showed.</p>



<p>At 0807 GMT, the shilling traded at 129.00/130.00 per dollar, the same as Tuesday&#8217;s closing rate.</p>



<p>On Tuesday the central bank lowered its benchmark lending rate to 12.75% from 13.00% previously, saying there was scope to ease policy gradually as inflation had fallen below the midpoint of its target range.</p>



<p>(Reporting by George Obulutsa; Editing by Alexander Winning)</p>


Kenyan shilling stable versus dollar – LSEG data


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1242" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg" alt="" class="wp-image-433145" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-1536x994.jpg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /><figcaption class="wp-element-caption">A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi/</figcaption></figure>



<p>NAIROBI, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s economy is projected to grow 5.5% in 2025, at a similar rate to this year&#8217;s 5.4% growth, central bank Governor Kamau Thugge said on Wednesday.</p>



<p>The forecast for next year&#8217;s growth comes a day after the Central Bank of Kenya cut its benchmark lending rate by 25 basis points, the first rate cut in about four years.</p>



<p>The Central Bank Rate was reduced to 12.75% after inflation fell below the midpoint of the government&#8217;s preferred range of 2.5%-7.5%.</p>



<p>(Reporting by George Obulutsa and Bhargav Acharya; Editing by Alexander Winning)</p>


A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi

Kenyan economic growth seen steady at 5.5% in 2025, central bank says


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017.   REUTERS/Thomas White/Illustration</figcaption></figure>



<p>JOHANNESBURG, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;The South African rand firmed in early trade on Wednesday, as risk sentiment improved and markets awaited jobless claims data out of the United States on Thursday for hints on the future interest rate path of the world&#8217;s biggest economy.</p>



<p>At 0626 GMT, the rand traded at 18.41 against the dollar, about 0.45% stronger than its previous close.</p>



<p>The rand is trading firmer &#8220;as risk sentiment improves and EM (emerging market) currencies all show some gains,&#8221; Andre Cilliers, currency strategist at TreasuryONE, said.</p>



<p>&#8220;Tomorrow&#8217;s U.S. jobless claims number will now be sharply in focus for confirmation of the weakening U.S. labour market,&#8221; Cilliers added.</p>



<p>Friday&#8217;s weak U.S. July payrolls report stoked recession worries earlier this week and led to a plunge in global equities on Monday, with traders fleeing to safe havens.</p>



<p>But U.S. central bank policymakers pushed back on Monday against the notion that the economy is close to recession and indicated the Federal Reserve would need to cut rates to avoid such an outcome.</p>



<p>Like other risk-sensitive currencies, the rand often takes its cue from global drivers such as U.S. economic data and monetary policy in addition to local factors.</p>



<p>On the domestic front, South Africa&#8217;s net foreign reserves rose to $59.165 billion at the end of July from $58.437 billion in June, central bank data showed on Wednesday.</p>



<p>South Africa&#8217;s benchmark 2030 government bond was also firmer in early deals, with the yield down 2.5 basis points to 9.35%.</p>



<p>(Reporting by Tannur Anders; Editing by Andrew Heavens)</p>


Illustration photo of South African rand

South African rand firms on improved sentiment, focus on US 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/2024/06/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-501467" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



<p>JOHANNESBURG, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, company announcements, equity and currency market moves may affect South African markets on Wednesday.</p>



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



<p>South Africa&#8217;s net foreign reserves rose to $59.165 billion at the end of July from $58.437 billion in June, central bank data showed on Wednesday.</p>



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



<p>The Johannesburg Stock Exchange will publish its half-year results.</p>



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



<p>The South African rand held steady on Tuesday as global risk sentiment improved after tanking on Monday amid fears of a possible recession in the United States.</p>



<p>On the Johannesburg Stock Exchange, the blue-chip Top-40 index last traded about down 0.6%. South Africa&#8217;s benchmark 2030 government bond was slightly weaker, with the yield up 1.5 basis point to 9.375%.</p>



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



<p>Asian share markets extended their rally on Wednesday, led by another bounce in the Nikkei, as the Bank of Japan unexpectedly turned cautious on rate hikes amidst market volatility, which led to a sharp fall in the yen.</p>



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



<p>The S&amp;P 500 and Nasdaq ended 1% higher on Tuesday as investors jumped back into the market a day after a dramatic sell-off, with recent comments by Federal Reserve officials easing U.S. recession worries.</p>



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



<p>Gold prices edged lower on Wednesday as the U.S. dollar and Treasury yields strengthened, while traders awaited further cues to gauge the size of the Federal Reserve&#8217;s likely September interest rate cut.</p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



<h2 class="wp-block-heading" id="h-business-day">BUSINESS DAY</h2>



<p>&#8211; SA less attractive to investors than Africa&#8217;s islands</p>



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



<p>&#8211; What this week&#8217;s turmoil may mean for SA interest rates</p>



<p>(Compiled by Tannur Anders; editing by David Evans)</p>


South African Markets – Factors to watch on Aug 7


<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>



<p>NAIROBI, Aug 7 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Wednesday.</p>



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



<p>*Uganda&#8217;s central bank is due to announce its latest benchmark lending rate decision.</p>



<p>*Kenya&#8217;s central bank governor is due to hold a news conference, a day after the bank announced its latest lending rate decision.</p>



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



<p>Asian share markets extended their rally on Wednesday, led by another bounce in the Nikkei, as the Bank of Japan unexpectedly turned cautious on rate hikes amidst market volatility, which led to a sharp fall in the yen.</p>



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



<p>Oil prices slipped in early Asian trading on Wednesday following a brief rebound in the previous session after industry data showed an unexpected build in U.S. crude oil and gasoline inventories, offsetting global oil supply concerns.</p>



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



<p>The South African rand held steady on Tuesday as global risk sentiment improved after tanking on Monday amid fears of a possible recession in the United States.</p>



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



<p>Nigeria&#8217;s oil output has risen to between 1.6 million and 1.7 million barrels per day after the government beefed up security to curb crude theft, Chief of Naval Staff Emmanuel Ikechukwu Ogalla said on Tuesday.</p>



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



<p>Kenya&#8217;s shilling eased slightly on Tuesday, and traders said it was expected to hold steady during the session, with dollar demand from various sectors being matched by supply.</p>



<h2 class="wp-block-heading" id="h-kenya-central-bank-rate">KENYA CENTRAL BANK RATE</h2>



<p>Kenya&#8217;s central bank cut its benchmark lending rate by 25 basis points on Tuesday, saying there was scope to ease policy gradually as inflation had fallen below the midpoint of its target range.</p>



<h2 class="wp-block-heading" id="h-ethiopia-forex">ETHIOPIA FOREX</h2>



<p>Ethiopia&#8217;s central bank said on Tuesday that it would conduct a special foreign exchange auction on Aug. 7.</p>



<p>((Compiled by Nairobi Newsroom))</p>


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Kenya’s currency seen strengthening, Ghana’s steady

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Kenyan shilling stable; remittances help meet importer demand

South African rand flat, global focus on US jobless claims

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Kenyan shilling stable versus dollar – LSEG data

Kenyan economic growth seen steady at 5.5% in 2025, central bank says

South African rand firms on improved sentiment, focus on US data

South African Markets – Factors to watch on Aug 7

African Markets – Factors to watch on Aug 7

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home

Kenya’s currency seen strengthening, Ghana’s steady

Kenya police use tear gas to clear pockets of protesters in Nairobi

Kenyan shilling stable; remittances help meet importer demand

South African rand flat, global focus on US jobless claims

Ethiopia’s securities exchange to start operations in October – media

South African Markets – Factors to watch on Aug 8

African Markets – Factors to watch on Aug 8

China’s exporters enjoyed the benefits of a weak yuan. Now that’s changing and cutting into profits

Johannesburg Stock Exchange’s half-year profit slips on lower equity trading

Uganda cuts key rate as shilling recovery helps inflation outlook

Zambia’s proposed mining law bad for investment, miners say

Kenya currency should shrug off rating downgrades, cenbank governor says

Kenyan shilling stable versus dollar – LSEG data

Kenyan economic growth seen steady at 5.5% in 2025, central bank says

South African rand firms on improved sentiment, focus on US data

South African Markets – Factors to watch on Aug 7

African Markets – Factors to watch on Aug 7

News Tips

Advertise With Us

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